Correlation Between Telecom Argentina and EMPLOYERS HLDGS
Can any of the company-specific risk be diversified away by investing in both Telecom Argentina and EMPLOYERS HLDGS 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 EMPLOYERS HLDGS 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 EMPLOYERS HLDGS DL, you can compare the effects of market volatilities on Telecom Argentina and EMPLOYERS HLDGS 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 EMPLOYERS HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Argentina and EMPLOYERS HLDGS.
Diversification Opportunities for Telecom Argentina and EMPLOYERS HLDGS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telecom and EMPLOYERS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Argentina SA and EMPLOYERS HLDGS DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMPLOYERS HLDGS DL 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 EMPLOYERS HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMPLOYERS HLDGS DL has no effect on the direction of Telecom Argentina i.e., Telecom Argentina and EMPLOYERS HLDGS go up and down completely randomly.
Pair Corralation between Telecom Argentina and EMPLOYERS HLDGS
Assuming the 90 days horizon Telecom Argentina SA is expected to generate 2.74 times more return on investment than EMPLOYERS HLDGS. However, Telecom Argentina is 2.74 times more volatile than EMPLOYERS HLDGS DL. It trades about 0.07 of its potential returns per unit of risk. EMPLOYERS HLDGS DL is currently generating about 0.09 per unit of risk. If you would invest 516.00 in Telecom Argentina SA on November 8, 2024 and sell it today you would earn a total of 614.00 from holding Telecom Argentina SA or generate 118.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Argentina SA vs. EMPLOYERS HLDGS DL
Performance |
| Timeline |
| Telecom Argentina |
| EMPLOYERS HLDGS DL |
Telecom Argentina and EMPLOYERS HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Argentina and EMPLOYERS HLDGS
The main advantage of trading using opposite Telecom Argentina and EMPLOYERS HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Argentina position performs unexpectedly, EMPLOYERS HLDGS 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 EMPLOYERS HLDGS will offset losses from the drop in EMPLOYERS HLDGS's long position.| Telecom Argentina vs. EVS Broadcast Equipment | Telecom Argentina vs. TITANIUM TRANSPORTGROUP | Telecom Argentina vs. BROADPEAK SA EO | Telecom Argentina vs. GOLD ROAD RES |
| EMPLOYERS HLDGS vs. EITZEN CHEMICALS | EMPLOYERS HLDGS vs. Siamgas And Petrochemicals | EMPLOYERS HLDGS vs. AUST AGRICULTURAL | EMPLOYERS HLDGS vs. Sterling Construction |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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