Correlation Between Telecom Argentina and Pegasus Tel
Can any of the company-specific risk be diversified away by investing in both Telecom Argentina and Pegasus Tel 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 Pegasus Tel 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 Pegasus Tel, you can compare the effects of market volatilities on Telecom Argentina and Pegasus Tel 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 Pegasus Tel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Argentina and Pegasus Tel.
Diversification Opportunities for Telecom Argentina and Pegasus Tel
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telecom and Pegasus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Argentina SA and Pegasus Tel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Tel 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 Pegasus Tel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Tel has no effect on the direction of Telecom Argentina i.e., Telecom Argentina and Pegasus Tel go up and down completely randomly.
Pair Corralation between Telecom Argentina and Pegasus Tel
Considering the 90-day investment horizon Telecom Argentina SA is expected to generate 0.57 times more return on investment than Pegasus Tel. However, Telecom Argentina SA is 1.75 times less risky than Pegasus Tel. It trades about 0.41 of its potential returns per unit of risk. Pegasus Tel is currently generating about -0.01 per unit of risk. If you would invest 954.00 in Telecom Argentina SA on September 3, 2024 and sell it today you would earn a total of 402.00 from holding Telecom Argentina SA or generate 42.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Argentina SA vs. Pegasus Tel
Performance |
| Timeline |
| Telecom Argentina |
| Pegasus Tel |
Telecom Argentina and Pegasus Tel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Argentina and Pegasus Tel
The main advantage of trading using opposite Telecom Argentina and Pegasus Tel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Argentina position performs unexpectedly, Pegasus Tel 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 Pegasus Tel will offset losses from the drop in Pegasus Tel's long position.| Telecom Argentina vs. Telefonica SA ADR | Telecom Argentina vs. Orange SA ADR | Telecom Argentina vs. SK Telecom Co | Telecom Argentina vs. America Movil SAB |
| Pegasus Tel vs. BCE Inc | Pegasus Tel vs. Axiologix | Pegasus Tel vs. Advanced Info Service | Pegasus Tel vs. SwissCom 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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