Correlation Between TELES Informationstech and Reinsurance Group
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By analyzing existing cross correlation between TELES Informationstechnologien AG and Reinsurance Group of, you can compare the effects of market volatilities on TELES Informationstech and Reinsurance Group 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 TELES Informationstech with a short position of Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELES Informationstech and Reinsurance Group.
Diversification Opportunities for TELES Informationstech and Reinsurance Group
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TELES and Reinsurance is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding TELES Informationstechnologien and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group and TELES Informationstech 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 TELES Informationstechnologien AG are associated (or correlated) with Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of TELES Informationstech i.e., TELES Informationstech and Reinsurance Group go up and down completely randomly.
Pair Corralation between TELES Informationstech and Reinsurance Group
Assuming the 90 days trading horizon TELES Informationstechnologien AG is expected to under-perform the Reinsurance Group. In addition to that, TELES Informationstech is 1.27 times more volatile than Reinsurance Group of. It trades about -0.1 of its total potential returns per unit of risk. Reinsurance Group of is currently generating about 0.03 per unit of volatility. If you would invest 19,124 in Reinsurance Group of on September 20, 2024 and sell it today you would earn a total of 776.00 from holding Reinsurance Group of or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TELES Informationstechnologien vs. Reinsurance Group of
Performance |
| Timeline |
| TELES Informationstech |
| Reinsurance Group |
TELES Informationstech and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TELES Informationstech and Reinsurance Group
The main advantage of trading using opposite TELES Informationstech and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TELES Informationstech position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| TELES Informationstech vs. Cisco Systems | TELES Informationstech vs. Nokia | TELES Informationstech vs. Superior Plus Corp | TELES Informationstech vs. SIVERS SEMICONDUCTORS AB |
| Reinsurance Group vs. YOOMA WELLNESS INC | Reinsurance Group vs. TELES Informationstechnologien AG | Reinsurance Group vs. Cleanaway Waste Management | Reinsurance Group vs. EHEALTH |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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