Correlation Between Telecom Argentina and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Telecom Argentina and Axcelis Technologies 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 Telecom Argentina and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecom Argentina SA and Axcelis Technologies, you can compare the effects of market volatilities on Telecom Argentina and Axcelis Technologies 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 Telecom Argentina with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Argentina and Axcelis Technologies.
Diversification Opportunities for Telecom Argentina and Axcelis Technologies
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telecom and Axcelis is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Argentina SA and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Telecom Argentina 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 Telecom Argentina SA are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Telecom Argentina i.e., Telecom Argentina and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Telecom Argentina and Axcelis Technologies
Assuming the 90 days horizon Telecom Argentina SA is expected to generate 1.88 times more return on investment than Axcelis Technologies. However, Telecom Argentina is 1.88 times more volatile than Axcelis Technologies. It trades about 0.12 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.11 per unit of risk. If you would invest 1,170 in Telecom Argentina SA on October 20, 2024 and sell it today you would earn a total of 90.00 from holding Telecom Argentina SA or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Argentina SA vs. Axcelis Technologies
Performance |
| Timeline |
| Telecom Argentina |
| Axcelis Technologies |
Telecom Argentina and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Argentina and Axcelis Technologies
The main advantage of trading using opposite Telecom Argentina and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Argentina position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| Telecom Argentina vs. ZURICH INSURANCE GROUP | Telecom Argentina vs. International Game Technology | Telecom Argentina vs. MOVIE GAMES SA | Telecom Argentina vs. PENN NATL GAMING |
| Axcelis Technologies vs. COMBA TELECOM SYST | Axcelis Technologies vs. ARISTOCRAT LEISURE | Axcelis Technologies vs. Telecom Argentina SA | Axcelis Technologies vs. Singapore Telecommunications Limited |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |