Correlation Between Telefonica Brasil and Orange SA
Can any of the company-specific risk be diversified away by investing in both Telefonica Brasil and Orange SA 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 Telefonica Brasil and Orange SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telefonica Brasil SA and Orange SA ADR, you can compare the effects of market volatilities on Telefonica Brasil and Orange SA 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 Telefonica Brasil with a short position of Orange SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telefonica Brasil and Orange SA.
Diversification Opportunities for Telefonica Brasil and Orange SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telefonica and Orange is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica Brasil SA and Orange SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orange SA ADR and Telefonica Brasil 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 Telefonica Brasil SA are associated (or correlated) with Orange SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orange SA ADR has no effect on the direction of Telefonica Brasil i.e., Telefonica Brasil and Orange SA go up and down completely randomly.
Pair Corralation between Telefonica Brasil and Orange SA
If you would invest (100.00) in Orange SA ADR on May 2, 2025 and sell it today you would earn a total of 100.00 from holding Orange SA ADR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telefonica Brasil SA vs. Orange SA ADR
Performance |
| Timeline |
| Telefonica Brasil |
| Orange SA ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Telefonica Brasil and Orange SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telefonica Brasil and Orange SA
The main advantage of trading using opposite Telefonica Brasil and Orange SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telefonica Brasil position performs unexpectedly, Orange SA 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 Orange SA will offset losses from the drop in Orange SA's long position.| Telefonica Brasil vs. Telefonica SA ADR | Telefonica Brasil vs. SK Telecom Co | Telefonica Brasil vs. America Movil SAB | Telefonica Brasil vs. KT Corporation |
| Orange SA vs. Telefonica Brasil SA | Orange SA vs. Vodafone Group PLC | Orange SA vs. Grupo Televisa SAB | Orange SA vs. America Movil SAB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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