Correlation Between TPG Telecom and SPASX 200
Can any of the company-specific risk be diversified away by investing in both TPG Telecom and SPASX 200 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 SPASX 200 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Telecom and SPASX 200 VIX, you can compare the effects of market volatilities on TPG Telecom and SPASX 200 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 SPASX 200. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and SPASX 200.
Diversification Opportunities for TPG Telecom and SPASX 200
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TPG and SPASX is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom and SPASX 200 VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 200 VIX 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 SPASX 200. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 200 VIX has no effect on the direction of TPG Telecom i.e., TPG Telecom and SPASX 200 go up and down completely randomly.
Pair Corralation between TPG Telecom and SPASX 200
Assuming the 90 days trading horizon TPG Telecom is expected to generate 0.53 times more return on investment than SPASX 200. However, TPG Telecom is 1.87 times less risky than SPASX 200. It trades about 0.05 of its potential returns per unit of risk. SPASX 200 VIX is currently generating about -0.1 per unit of risk. If you would invest 436.00 in TPG Telecom on September 13, 2024 and sell it today you would earn a total of 5.00 from holding TPG Telecom or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TPG Telecom vs. SPASX 200 VIX
Performance |
| Timeline |
TPG Telecom and SPASX 200 Volatility Contrast
Predicted Return Density |
| Returns |
TPG Telecom
Pair trading matchups for TPG Telecom
SPASX 200 VIX
Pair trading matchups for SPASX 200
Pair Trading with TPG Telecom and SPASX 200
The main advantage of trading using opposite TPG Telecom and SPASX 200 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG Telecom position performs unexpectedly, SPASX 200 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 SPASX 200 will offset losses from the drop in SPASX 200's long position.| TPG Telecom vs. Accent Resources NL | TPG Telecom vs. Hutchison Telecommunications | TPG Telecom vs. Energy Resources | TPG Telecom vs. Pact Group Holdings |
| SPASX 200 vs. Spirit Telecom | SPASX 200 vs. Mount Gibson Iron | SPASX 200 vs. The Environmental Group | SPASX 200 vs. Air New Zealand |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |