Correlation Between Tele2 AB and Koc Holdings
Can any of the company-specific risk be diversified away by investing in both Tele2 AB and Koc Holdings 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 Koc Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tele2 AB and Koc Holdings AS, you can compare the effects of market volatilities on Tele2 AB and Koc Holdings 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 Koc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and Koc Holdings.
Diversification Opportunities for Tele2 AB and Koc Holdings
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tele2 and Koc is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and Koc Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holdings AS 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 Koc Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holdings AS has no effect on the direction of Tele2 AB i.e., Tele2 AB and Koc Holdings go up and down completely randomly.
Pair Corralation between Tele2 AB and Koc Holdings
Assuming the 90 days horizon Tele2 AB is expected to generate 0.75 times more return on investment than Koc Holdings. However, Tele2 AB is 1.34 times less risky than Koc Holdings. It trades about 0.08 of its potential returns per unit of risk. Koc Holdings AS is currently generating about 0.03 per unit of risk. If you would invest 374.00 in Tele2 AB on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Tele2 AB or generate 37.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Tele2 AB vs. Koc Holdings AS
Performance |
| Timeline |
| Tele2 AB |
| Koc Holdings AS |
Tele2 AB and Koc Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and Koc Holdings
The main advantage of trading using opposite Tele2 AB and Koc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, Koc Holdings 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 Koc Holdings will offset losses from the drop in Koc Holdings' 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 |
| Koc Holdings vs. Akbank Turk Anonim | Koc Holdings vs. Turkiye Garanti Bankasi | Koc Holdings vs. Astra International Tbk | Koc Holdings vs. Bank Mandiri Persero |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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