Correlation Between Deutsche Telekom and 3D Systems
Can any of the company-specific risk be diversified away by investing in both Deutsche Telekom and 3D Systems 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 Deutsche Telekom and 3D Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Telekom AG and 3D Systems, you can compare the effects of market volatilities on Deutsche Telekom and 3D Systems 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 Deutsche Telekom with a short position of 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Telekom and 3D Systems.
Diversification Opportunities for Deutsche Telekom and 3D Systems
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and SYV is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Telekom AG and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems and Deutsche Telekom 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 Deutsche Telekom AG are associated (or correlated) with 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of Deutsche Telekom i.e., Deutsche Telekom and 3D Systems go up and down completely randomly.
Pair Corralation between Deutsche Telekom and 3D Systems
Assuming the 90 days horizon Deutsche Telekom is expected to generate 2.9 times less return on investment than 3D Systems. But when comparing it to its historical volatility, Deutsche Telekom AG is 6.17 times less risky than 3D Systems. It trades about 0.25 of its potential returns per unit of risk. 3D Systems is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 185.00 in 3D Systems on September 8, 2024 and sell it today you would earn a total of 69.00 from holding 3D Systems or generate 37.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Telekom AG vs. 3D Systems
Performance |
Timeline |
Deutsche Telekom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
3D Systems |
Deutsche Telekom and 3D Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Telekom and 3D Systems
The main advantage of trading using opposite Deutsche Telekom and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Telekom position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.Deutsche Telekom vs. Neinor Homes SA | Deutsche Telekom vs. MAVEN WIRELESS SWEDEN | Deutsche Telekom vs. 24SEVENOFFICE GROUP AB | Deutsche Telekom vs. MI Homes |
3D Systems vs. Brockhaus Capital Management | 3D Systems vs. Meli Hotels International | 3D Systems vs. Playa Hotels Resorts | 3D Systems vs. Host Hotels Resorts |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
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 |