Correlation Between Telekom Austria and AT S
Can any of the company-specific risk be diversified away by investing in both Telekom Austria and AT S 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 Telekom Austria and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telekom Austria AG and AT S Austria, you can compare the effects of market volatilities on Telekom Austria and AT S 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 Telekom Austria with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telekom Austria and AT S.
Diversification Opportunities for Telekom Austria and AT S
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telekom and ATS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Telekom Austria AG and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and Telekom Austria 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 Telekom Austria AG are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Telekom Austria i.e., Telekom Austria and AT S go up and down completely randomly.
Pair Corralation between Telekom Austria and AT S
Assuming the 90 days trading horizon Telekom Austria is expected to generate 1.66 times less return on investment than AT S. But when comparing it to its historical volatility, Telekom Austria AG is 3.23 times less risky than AT S. It trades about 0.28 of its potential returns per unit of risk. AT S Austria is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,156 in AT S Austria on November 18, 2024 and sell it today you would earn a total of 110.00 from holding AT S Austria or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telekom Austria AG vs. AT S Austria
Performance |
| Timeline |
| Telekom Austria AG |
| AT S Austria |
Telekom Austria and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telekom Austria and AT S
The main advantage of trading using opposite Telekom Austria and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telekom Austria position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| Telekom Austria vs. Voestalpine AG | Telekom Austria vs. Oesterr Post AG | Telekom Austria vs. Wienerberger AG | Telekom Austria vs. VERBUND AG |
| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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