Correlation Between TPG Telecom and Accent
Can any of the company-specific risk be diversified away by investing in both TPG Telecom and Accent 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 TPG Telecom and Accent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Telecom and Accent Group, you can compare the effects of market volatilities on TPG Telecom and Accent 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 TPG Telecom with a short position of Accent. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and Accent.
Diversification Opportunities for TPG Telecom and Accent
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPG and Accent is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom and Accent Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Group and TPG Telecom 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 TPG Telecom are associated (or correlated) with Accent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Group has no effect on the direction of TPG Telecom i.e., TPG Telecom and Accent go up and down completely randomly.
Pair Corralation between TPG Telecom and Accent
Assuming the 90 days trading horizon TPG Telecom is expected to under-perform the Accent. But the stock apears to be less risky and, when comparing its historical volatility, TPG Telecom is 2.6 times less risky than Accent. The stock trades about 0.0 of its potential returns per unit of risk. The Accent Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Accent Group on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Accent Group or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TPG Telecom vs. Accent Group
Performance |
| Timeline |
| TPG Telecom |
| Accent Group |
TPG Telecom and Accent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPG Telecom and Accent
The main advantage of trading using opposite TPG Telecom and Accent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG Telecom position performs unexpectedly, Accent 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 Accent will offset losses from the drop in Accent's long position.| TPG Telecom vs. Ainsworth Game Technology | TPG Telecom vs. Kkr Credit Income | TPG Telecom vs. National Australia Bank | TPG Telecom vs. Toys R Us |
| Accent vs. Aneka Tambang Tbk | Accent vs. BHP Group Limited | Accent vs. Commonwealth Bank | Accent vs. Commonwealth Bank of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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