Correlation Between TELES Informationstech and KENEDIX OFFICE

Can any of the company-specific risk be diversified away by investing in both TELES Informationstech and KENEDIX OFFICE 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 TELES Informationstech and KENEDIX OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TELES Informationstechnologien AG and KENEDIX OFFICE INV, you can compare the effects of market volatilities on TELES Informationstech and KENEDIX OFFICE 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 TELES Informationstech with a short position of KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELES Informationstech and KENEDIX OFFICE.

Diversification Opportunities for TELES Informationstech and KENEDIX OFFICE

0.4

Correlation Coefficient

TELES Informationstech  KENEDIX OFFICE

Very weak diversification

The 3 months correlation between TELES and KENEDIX is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding TELES Informationstechnologien and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV and TELES Informationstech 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 TELES Informationstechnologien AG are associated (or correlated) with KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of TELES Informationstech i.e., TELES Informationstech and KENEDIX OFFICE go up and down completely randomly.

Pair Corralation between TELES Informationstech and KENEDIX OFFICE

If you would invest  89,000  in KENEDIX OFFICE INV on September 24, 2024 and sell it today you would lose (1,000.00) from holding KENEDIX OFFICE INV or give up 1.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.41%
Values	Daily Returns

TELES Informationstechnologien  vs.  KENEDIX OFFICE INV

TELES Informationstech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TELES Informationstechnologien AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

KENEDIX OFFICE INV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KENEDIX OFFICE INV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KENEDIX OFFICE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TELES Informationstech and KENEDIX OFFICE

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

The idea behind TELES Informationstechnologien AG and KENEDIX OFFICE INV 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..