Correlation Between Telia Company and TPG Telecom
Can any of the company-specific risk be diversified away by investing in both Telia Company and TPG Telecom 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 Telia Company and TPG Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telia Company AB and TPG Telecom Limited, you can compare the effects of market volatilities on Telia Company and TPG Telecom 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 Telia Company with a short position of TPG Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telia Company and TPG Telecom.
Diversification Opportunities for Telia Company and TPG Telecom
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Telia and TPG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Telia Company AB and TPG Telecom Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG Telecom Limited and Telia Company 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 Telia Company AB are associated (or correlated) with TPG Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG Telecom Limited has no effect on the direction of Telia Company i.e., Telia Company and TPG Telecom go up and down completely randomly.
Pair Corralation between Telia Company and TPG Telecom
If you would invest 373.00 in TPG Telecom Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding TPG Telecom Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 13.64% |
| Values | Daily Returns |
Telia Company AB vs. TPG Telecom Limited
Performance |
| Timeline |
| Telia Company |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TPG Telecom Limited |
Telia Company and TPG Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telia Company and TPG Telecom
The main advantage of trading using opposite Telia Company and TPG Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telia Company position performs unexpectedly, TPG Telecom 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 TPG Telecom will offset losses from the drop in TPG Telecom's long position.| Telia Company vs. Radcom | Telia Company vs. Meiwu Technology Co | Telia Company vs. The Gap, | Telia Company vs. Nike Inc |
| TPG Telecom vs. Origin Materials | TPG Telecom vs. Avient Corp | TPG Telecom vs. Ecolab Inc | TPG Telecom vs. Dave Busters Entertainment |
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.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |