Telefonica Correlations
| TEF Stock | EUR 4.28 0.04 0.93% |
The current 90-days correlation between Telefonica and Banco Santander is 0.02 (i.e., Significant diversification). The correlation of Telefonica is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Telefonica Correlation With Market
Very good diversification
The correlation between Telefonica and DJI is -0.28 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica and DJI in the same portfolio, assuming nothing else is changed.
Telefonica |
The ability to find closely correlated positions to Telefonica could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Telefonica when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Telefonica - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Telefonica to buy it.
Moving against Telefonica Stock
Related Correlations Analysis
| -0.23 | 0.12 | 0.75 | 0.24 | SAN | ||
| -0.23 | 0.27 | 0.0 | -0.52 | REP | ||
| 0.12 | 0.27 | 0.13 | -0.17 | IBE | ||
| 0.75 | 0.0 | 0.13 | 0.07 | BBVA | ||
| 0.24 | -0.52 | -0.17 | 0.07 | ELE | ||
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Telefonica Stock performing well and Telefonica Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Telefonica's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SAN | 1.23 | 0.22 | 0.03 | (0.65) | 1.72 | 2.49 | 7.42 | |||
| REP | 0.86 | (0.02) | 0.00 | 0.28 | 0.00 | 1.48 | 4.50 | |||
| IBE | 0.82 | 0.00 | 0.00 | 0.11 | 0.00 | 1.55 | 5.88 | |||
| BBVA | 1.33 | 0.17 | 0.02 | (1.60) | 1.94 | 3.19 | 9.91 | |||
| ELE | 0.85 | 0.13 | (0.01) | (0.61) | 1.14 | 2.11 | 5.67 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Telefonica without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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