Correlation Between Telekom Austria and CA Immobilien

Can any of the company-specific risk be diversified away by investing in both Telekom Austria and CA Immobilien 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 Telekom Austria and CA Immobilien into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Telekom Austria AG and CA Immobilien Anlagen, you can compare the effects of market volatilities on Telekom Austria and CA Immobilien 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 Telekom Austria with a short position of CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telekom Austria and CA Immobilien.

Diversification Opportunities for Telekom Austria and CA Immobilien

-0.16

Correlation Coefficient

Telekom Austria  CA Immobilien

Good diversification

The 3 months correlation between Telekom and CAI is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Telekom Austria AG and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen and Telekom Austria 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 Telekom Austria AG are associated (or correlated) with CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Telekom Austria i.e., Telekom Austria and CA Immobilien go up and down completely randomly.

Pair Corralation between Telekom Austria and CA Immobilien

Assuming the 90 days trading horizon Telekom Austria AG is expected to generate 0.64 times more return on investment than CA Immobilien. However, Telekom Austria AG is 1.56 times less risky than CA Immobilien. It trades about 0.14 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about -0.01 per unit of risk. If you would invest  798.00  in Telekom Austria AG on December 2, 2024 and sell it today you would earn a total of  53.00  from holding Telekom Austria AG or generate 6.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Telekom Austria AG  vs.  CA Immobilien Anlagen

Telekom Austria AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Telekom Austria AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Telekom Austria may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CA Immobilien Anlagen

Risk-Adjusted Performance

Very Weak

Over the last 90 days CA Immobilien Anlagen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, CA Immobilien is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Telekom Austria and CA Immobilien

The main advantage of trading using opposite Telekom Austria and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telekom Austria position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.

The idea behind Telekom Austria AG and CA Immobilien Anlagen 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.