Correlation Between VEON and Telia Company
Can any of the company-specific risk be diversified away by investing in both VEON and Telia Company 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 VEON and Telia Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEON and Telia Company AB, you can compare the effects of market volatilities on VEON and Telia Company 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 VEON with a short position of Telia Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEON and Telia Company.
Diversification Opportunities for VEON and Telia Company
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VEON and Telia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding VEON and Telia Company AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telia Company and VEON 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 VEON are associated (or correlated) with Telia Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telia Company has no effect on the direction of VEON i.e., VEON and Telia Company go up and down completely randomly.
Pair Corralation between VEON and Telia Company
If you would invest 3,145 in VEON on August 25, 2024 and sell it today you would lose (10.00) from holding VEON or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
VEON vs. Telia Company AB
Performance |
| Timeline |
| VEON |
| Telia Company |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VEON and Telia Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEON and Telia Company
The main advantage of trading using opposite VEON and Telia Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEON position performs unexpectedly, Telia Company 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 Telia Company will offset losses from the drop in Telia Company's long position.| VEON vs. Telecom Argentina SA | VEON vs. Telkom Indonesia Tbk | VEON vs. PLDT Inc ADR | VEON vs. Telefonica Brasil SA |
| Telia Company vs. MTN Group Ltd | Telia Company vs. Vodacom Group Ltd | Telia Company vs. Telenor ASA ADR | Telia Company vs. WideOpenWest |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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