Correlation Between QUALCOMM Incorporated and Telecom Argentina

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

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

Diversification Opportunities for QUALCOMM Incorporated and Telecom Argentina

-0.54

Correlation Coefficient

QUALCOMM Incorporated  Telecom Argentina

Excellent diversification

The 3 months correlation between QUALCOMM and Telecom is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding QUALCOMM Incorporated and Telecom Argentina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Argentina and QUALCOMM Incorporated 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 QUALCOMM Incorporated are associated (or correlated) with Telecom Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Argentina has no effect on the direction of QUALCOMM Incorporated i.e., QUALCOMM Incorporated and Telecom Argentina go up and down completely randomly.

Pair Corralation between QUALCOMM Incorporated and Telecom Argentina

Assuming the 90 days trading horizon QUALCOMM Incorporated is expected to generate 0.76 times more return on investment than Telecom Argentina. However, QUALCOMM Incorporated is 1.31 times less risky than Telecom Argentina. It trades about 0.1 of its potential returns per unit of risk. Telecom Argentina is currently generating about -0.03 per unit of risk. If you would invest  1,307  in QUALCOMM Incorporated on April 23, 2025 and sell it today you would earn a total of  133.00  from holding QUALCOMM Incorporated or generate 10.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

QUALCOMM Incorporated  vs.  Telecom Argentina

QUALCOMM Incorporated

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QUALCOMM Incorporated are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, QUALCOMM Incorporated may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Telecom Argentina

Risk-Adjusted Performance

Very Weak

Over the last 90 days Telecom Argentina has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Telecom Argentina is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with QUALCOMM Incorporated and Telecom Argentina

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

The idea behind QUALCOMM Incorporated and Telecom Argentina 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.