Correlation Between KonaTel and Koninklijke KPN
Can any of the company-specific risk be diversified away by investing in both KonaTel and Koninklijke KPN 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 KonaTel and Koninklijke KPN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KonaTel and Koninklijke KPN NV, you can compare the effects of market volatilities on KonaTel and Koninklijke KPN 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 KonaTel with a short position of Koninklijke KPN. Check out your portfolio center. Please also check ongoing floating volatility patterns of KonaTel and Koninklijke KPN.
Diversification Opportunities for KonaTel and Koninklijke KPN
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KonaTel and Koninklijke is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding KonaTel and Koninklijke KPN NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke KPN NV and KonaTel 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 KonaTel are associated (or correlated) with Koninklijke KPN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke KPN NV has no effect on the direction of KonaTel i.e., KonaTel and Koninklijke KPN go up and down completely randomly.
Pair Corralation between KonaTel and Koninklijke KPN
If you would invest 58.00 in KonaTel on February 15, 2024 and sell it today you would earn a total of 8.00 from holding KonaTel or generate 13.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
KonaTel vs. Koninklijke KPN NV
Performance |
Timeline |
KonaTel |
Koninklijke KPN NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KonaTel and Koninklijke KPN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KonaTel and Koninklijke KPN
The main advantage of trading using opposite KonaTel and Koninklijke KPN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KonaTel position performs unexpectedly, Koninklijke KPN 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 Koninklijke KPN will offset losses from the drop in Koninklijke KPN's long position.The idea behind KonaTel and Koninklijke KPN NV 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.Koninklijke KPN vs. Pegasus Tel | Koninklijke KPN vs. SwissCom AG | Koninklijke KPN vs. Hellenic Telecommunications Org | Koninklijke KPN vs. KonaTel |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Stocks Directory Find actively traded stocks across global markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |