Correlation Between Telefonica and OPUS GLOBAL
Can any of the company-specific risk be diversified away by investing in both Telefonica and OPUS GLOBAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Telefonica and OPUS GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telefonica SA and OPUS GLOBAL Nyrt, you can compare the effects of market volatilities on Telefonica and OPUS GLOBAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Telefonica with a short position of OPUS GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telefonica and OPUS GLOBAL.
Diversification Opportunities for Telefonica and OPUS GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telefonica and OPUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica SA and OPUS GLOBAL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPUS GLOBAL Nyrt and Telefonica is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Telefonica SA are associated (or correlated) with OPUS GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPUS GLOBAL Nyrt has no effect on the direction of Telefonica i.e., Telefonica and OPUS GLOBAL go up and down completely randomly.
Pair Corralation between Telefonica and OPUS GLOBAL
If you would invest 12,207 in OPUS GLOBAL Nyrt on August 27, 2024 and sell it today you would earn a total of 38,593 from holding OPUS GLOBAL Nyrt or generate 316.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telefonica SA vs. OPUS GLOBAL Nyrt
Performance |
| Timeline |
| Telefonica SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OPUS GLOBAL Nyrt |
Telefonica and OPUS GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telefonica and OPUS GLOBAL
The main advantage of trading using opposite Telefonica and OPUS GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telefonica position performs unexpectedly, OPUS GLOBAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OPUS GLOBAL will offset losses from the drop in OPUS GLOBAL's long position.| Telefonica vs. Delta Technologies Nyrt | Telefonica vs. Nutex Investments PLC | Telefonica vs. NordTelekom Telecommunications Service | Telefonica vs. Infineon Technologies AG |
| OPUS GLOBAL vs. NordTelekom Telecommunications Service | OPUS GLOBAL vs. Nutex Investments PLC | OPUS GLOBAL vs. OTP Bank Nyrt | OPUS GLOBAL vs. Infineon Technologies AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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