Correlation Between TPG Telecom and Unibail Rodamco

Can any of the company-specific risk be diversified away by investing in both TPG Telecom and Unibail Rodamco 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 TPG Telecom and Unibail Rodamco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TPG Telecom and Unibail Rodamco Westfield SE, you can compare the effects of market volatilities on TPG Telecom and Unibail Rodamco 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 TPG Telecom with a short position of Unibail Rodamco. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and Unibail Rodamco.

Diversification Opportunities for TPG Telecom and Unibail Rodamco

0.25

Correlation Coefficient

TPG Telecom  Unibail Rodamco

Modest diversification

The 3 months correlation between TPG and Unibail is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom and Unibail Rodamco Westfield SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibail Rodamco West and TPG Telecom 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 TPG Telecom are associated (or correlated) with Unibail Rodamco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibail Rodamco West has no effect on the direction of TPG Telecom i.e., TPG Telecom and Unibail Rodamco go up and down completely randomly.

Pair Corralation between TPG Telecom and Unibail Rodamco

Assuming the 90 days trading horizon TPG Telecom is expected to generate 0.63 times more return on investment than Unibail Rodamco. However, TPG Telecom is 1.58 times less risky than Unibail Rodamco. It trades about -0.05 of its potential returns per unit of risk. Unibail Rodamco Westfield SE is currently generating about -0.08 per unit of risk. If you would invest  445.00  in TPG Telecom on October 10, 2024 and sell it today you would lose (6.00) from holding TPG Telecom or give up 1.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TPG Telecom  vs.  Unibail Rodamco Westfield SE

TPG Telecom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TPG Telecom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Unibail Rodamco West

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Unibail Rodamco Westfield SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Unibail Rodamco is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TPG Telecom and Unibail Rodamco

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

The idea behind TPG Telecom and Unibail Rodamco Westfield SE 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.