Correlation Between Telkonet and Careview Comm

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

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

Diversification Opportunities for Telkonet and Careview Comm

0.0

Correlation Coefficient

Telkonet  Careview Comm

Pay attention - limited upside

The 3 months correlation between Telkonet and Careview is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telkonet and Careview Comm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Careview Comm and Telkonet 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 Telkonet are associated (or correlated) with Careview Comm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Careview Comm has no effect on the direction of Telkonet i.e., Telkonet and Careview Comm go up and down completely randomly.

Pair Corralation between Telkonet and Careview Comm

If you would invest  2.30  in Careview Comm on May 6, 2025 and sell it today you would lose (0.37) from holding Careview Comm or give up 16.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Telkonet  vs.  Careview Comm

Telkonet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Telkonet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Telkonet is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Careview Comm

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Careview Comm are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Careview Comm showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telkonet and Careview Comm

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

The idea behind Telkonet and Careview Comm 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.