Correlation Between Telecom Italia and Cellcom Israel
Can any of the company-specific risk be diversified away by investing in both Telecom Italia and Cellcom Israel 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 Italia and Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecom Italia SpA and Cellcom Israel, you can compare the effects of market volatilities on Telecom Italia and Cellcom Israel 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 Italia with a short position of Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Italia and Cellcom Israel.
Diversification Opportunities for Telecom Italia and Cellcom Israel
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telecom and Cellcom is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Italia SpA and Cellcom Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellcom Israel and Telecom Italia 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 Italia SpA are associated (or correlated) with Cellcom Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellcom Israel has no effect on the direction of Telecom Italia i.e., Telecom Italia and Cellcom Israel go up and down completely randomly.
Pair Corralation between Telecom Italia and Cellcom Israel
If you would invest 500.00 in Cellcom Israel on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Cellcom Israel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Italia SpA vs. Cellcom Israel
Performance |
| Timeline |
| Telecom Italia SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cellcom Israel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Telecom Italia and Cellcom Israel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Italia and Cellcom Israel
The main advantage of trading using opposite Telecom Italia and Cellcom Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Italia position performs unexpectedly, Cellcom Israel 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 Cellcom Israel will offset losses from the drop in Cellcom Israel's long position.| Telecom Italia vs. Telefonica Brasil SA | Telecom Italia vs. Orange SA ADR | Telecom Italia vs. Vodafone Group PLC | Telecom Italia vs. Grupo Televisa SAB |
| Cellcom Israel vs. Straumann Holding AG | Cellcom Israel vs. Singapore Exchange Ltd | Cellcom Israel vs. Japan Exchange Group | Cellcom Israel vs. XL Axiata Tbk |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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