Correlation Between Telekom Austria and Cleen Energy
Can any of the company-specific risk be diversified away by investing in both Telekom Austria and Cleen Energy 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 Cleen Energy 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 Cleen Energy AG, you can compare the effects of market volatilities on Telekom Austria and Cleen Energy 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 Cleen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telekom Austria and Cleen Energy.
Diversification Opportunities for Telekom Austria and Cleen Energy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Telekom and Cleen is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Telekom Austria AG and Cleen Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleen Energy AG 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 Cleen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleen Energy AG has no effect on the direction of Telekom Austria i.e., Telekom Austria and Cleen Energy go up and down completely randomly.
Pair Corralation between Telekom Austria and Cleen Energy
Assuming the 90 days trading horizon Telekom Austria AG is expected to generate 0.29 times more return on investment than Cleen Energy. However, Telekom Austria AG is 3.43 times less risky than Cleen Energy. It trades about 0.05 of its potential returns per unit of risk. Cleen Energy AG is currently generating about -0.16 per unit of risk. If you would invest 770.00 in Telekom Austria AG on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Telekom Austria AG or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telekom Austria AG vs. Cleen Energy AG
Performance |
| Timeline |
| Telekom Austria AG |
| Cleen Energy AG |
Telekom Austria and Cleen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telekom Austria and Cleen Energy
The main advantage of trading using opposite Telekom Austria and Cleen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telekom Austria position performs unexpectedly, Cleen Energy 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 Cleen Energy will offset losses from the drop in Cleen Energy's long position.| Telekom Austria vs. Voestalpine AG | Telekom Austria vs. Oesterr Post AG | Telekom Austria vs. Wienerberger AG | Telekom Austria vs. VERBUND AG |
| Cleen Energy vs. AMAG Austria Metall | Cleen Energy vs. Universal Music Group | Cleen Energy vs. Raiffeisen Bank International | Cleen Energy vs. Oberbank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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