Correlation Between Telenor ASA and Deutsche Telekom
Can any of the company-specific risk be diversified away by investing in both Telenor ASA and Deutsche Telekom 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 Deutsche Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA ADR and Deutsche Telekom AG, you can compare the effects of market volatilities on Telenor ASA and Deutsche Telekom 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 Deutsche Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Deutsche Telekom.
Diversification Opportunities for Telenor ASA and Deutsche Telekom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telenor and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA ADR and Deutsche Telekom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Telekom 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 ADR are associated (or correlated) with Deutsche Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Telekom has no effect on the direction of Telenor ASA i.e., Telenor ASA and Deutsche Telekom go up and down completely randomly.
Pair Corralation between Telenor ASA and Deutsche Telekom
If you would invest 1,009 in Telenor ASA ADR on December 16, 2024 and sell it today you would earn a total of 392.00 from holding Telenor ASA ADR or generate 38.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telenor ASA ADR vs. Deutsche Telekom AG
Performance |
| Timeline |
| Telenor ASA ADR |
| Deutsche Telekom |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Telenor ASA and Deutsche Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Deutsche Telekom
The main advantage of trading using opposite Telenor ASA and Deutsche Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA position performs unexpectedly, Deutsche Telekom 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 Deutsche Telekom will offset losses from the drop in Deutsche Telekom's long position.| Telenor ASA vs. PCCW Limited | ||
| Telenor ASA vs. Hellenic Telecommunications Org | ||
| Telenor ASA vs. Telefonica SA ADR | ||
| Telenor ASA vs. XL Axiata Tbk |
| Deutsche Telekom vs. KDDI Corp PK | ||
| Deutsche Telekom vs. Nippon Telegraph Telephone | ||
| Deutsche Telekom vs. Softbank Group Corp | ||
| Deutsche Telekom vs. KT Corporation |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |