Correlation Between TELECOM ITALIA and Caseys General

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TELECOM ITALIA and Caseys General 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 TELECOM ITALIA and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TELECOM ITALIA and Caseys General Stores, you can compare the effects of market volatilities on TELECOM ITALIA and Caseys General 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 TELECOM ITALIA with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELECOM ITALIA and Caseys General.

Diversification Opportunities for TELECOM ITALIA and Caseys General

TELECOMCaseysDiversified AwayTELECOMCaseysDiversified Away100%
0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between TELECOM and Caseys is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding TELECOM ITALIA and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and TELECOM ITALIA 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 TELECOM ITALIA are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of TELECOM ITALIA i.e., TELECOM ITALIA and Caseys General go up and down completely randomly.

Pair Corralation between TELECOM ITALIA and Caseys General

Assuming the 90 days trading horizon TELECOM ITALIA is expected to generate 2.07 times more return on investment than Caseys General. However, TELECOM ITALIA is 2.07 times more volatile than Caseys General Stores. It trades about 0.08 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.1 per unit of risk. If you would invest  23.00  in TELECOM ITALIA on December 3, 2024 and sell it today you would earn a total of  4.00  from holding TELECOM ITALIA or generate 17.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

TELECOM ITALIA  vs.  Caseys General Stores

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015202530
JavaScript chart by amCharts 3.21.15TQI CS2
       Timeline  
TELECOM ITALIA 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TELECOM ITALIA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TELECOM ITALIA unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFebMar0.220.230.240.250.260.270.280.290.30.31
Caseys General Stores 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Caseys General Stores has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Caseys General is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar380390400410420

TELECOM ITALIA and Caseys General Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.61-6.45-4.29-2.13-0.012.24.476.759.0211.29 0.050.100.150.20
JavaScript chart by amCharts 3.21.15TQI CS2
       Returns  

Pair Trading with TELECOM ITALIA and Caseys General

The main advantage of trading using opposite TELECOM ITALIA and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TELECOM ITALIA position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.
The idea behind TELECOM ITALIA and Caseys General Stores pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.