Correlation Between Telenor ASA and KORE Group
Can any of the company-specific risk be diversified away by investing in both Telenor ASA and KORE Group 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 Telenor ASA and KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA and KORE Group Holdings, you can compare the effects of market volatilities on Telenor ASA and KORE Group 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 Telenor ASA with a short position of KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and KORE Group.
Diversification Opportunities for Telenor ASA and KORE Group
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Telenor and KORE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and Telenor ASA 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 Telenor ASA are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Telenor ASA i.e., Telenor ASA and KORE Group go up and down completely randomly.
Pair Corralation between Telenor ASA and KORE Group
Assuming the 90 days horizon Telenor ASA is expected to generate 0.27 times more return on investment than KORE Group. However, Telenor ASA is 3.73 times less risky than KORE Group. It trades about -0.05 of its potential returns per unit of risk. KORE Group Holdings is currently generating about -0.07 per unit of risk. If you would invest 1,190 in Telenor ASA on August 26, 2024 and sell it today you would lose (24.00) from holding Telenor ASA or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telenor ASA vs. KORE Group Holdings
Performance |
| Timeline |
| Telenor ASA |
| KORE Group Holdings |
Telenor ASA and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and KORE Group
The main advantage of trading using opposite Telenor ASA and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA position performs unexpectedly, KORE Group 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 KORE Group will offset losses from the drop in KORE Group's long position.| Telenor ASA vs. Vodafone Group PLC | Telenor ASA vs. KDDI Corp | Telenor ASA vs. Amrica Mvil, SAB | Telenor ASA vs. Singapore Telecommunications Limited |
| KORE Group vs. Cogent Communications Group | KORE Group vs. Liberty Broadband Srs | KORE Group vs. Ribbon Communications | KORE Group vs. Liberty Broadband Srs |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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