Correlation Between Tele2 AB and Access Power
Can any of the company-specific risk be diversified away by investing in both Tele2 AB and Access Power 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 Tele2 AB and Access Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tele2 AB and Access Power Co, you can compare the effects of market volatilities on Tele2 AB and Access Power 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 Tele2 AB with a short position of Access Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and Access Power.
Diversification Opportunities for Tele2 AB and Access Power
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tele2 and Access is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and Access Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Power and Tele2 AB 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 Tele2 AB are associated (or correlated) with Access Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Power has no effect on the direction of Tele2 AB i.e., Tele2 AB and Access Power go up and down completely randomly.
Pair Corralation between Tele2 AB and Access Power
Assuming the 90 days horizon Tele2 AB is expected to under-perform the Access Power. But the pink sheet apears to be less risky and, when comparing its historical volatility, Tele2 AB is 12.0 times less risky than Access Power. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Access Power Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.12 in Access Power Co on August 29, 2024 and sell it today you would lose (0.04) from holding Access Power Co or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tele2 AB vs. Access Power Co
Performance |
| Timeline |
| Tele2 AB |
| Access Power |
Tele2 AB and Access Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and Access Power
The main advantage of trading using opposite Tele2 AB and Access Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, Access Power 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 Access Power will offset losses from the drop in Access Power's long position.| Tele2 AB vs. Proximus NV ADR | Tele2 AB vs. Telstra Limited | Tele2 AB vs. Singapore Telecommunications Limited | Tele2 AB vs. Vodafone Group PLC |
| Access Power vs. BCE Inc | Access Power vs. Axiologix | Access Power vs. Advanced Info Service | Access Power vs. American Nortel Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |