Correlation Between T Mobile and Systemair
Can any of the company-specific risk be diversified away by investing in both T Mobile and Systemair 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 T Mobile and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Systemair AB, you can compare the effects of market volatilities on T Mobile and Systemair 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 T Mobile with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Systemair.
Diversification Opportunities for T Mobile and Systemair
Modest diversification
The 3 months correlation between 0R2L and Systemair is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and T Mobile 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 T Mobile are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of T Mobile i.e., T Mobile and Systemair go up and down completely randomly.
Pair Corralation between T Mobile and Systemair
Assuming the 90 days trading horizon T Mobile is expected to generate 1.2 times less return on investment than Systemair. But when comparing it to its historical volatility, T Mobile is 2.04 times less risky than Systemair. It trades about 0.31 of its potential returns per unit of risk. Systemair AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,510 in Systemair AB on August 28, 2024 and sell it today you would earn a total of 700.00 from holding Systemair AB or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. Systemair AB
Performance |
| Timeline |
| T Mobile |
| Systemair AB |
T Mobile and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Systemair
The main advantage of trading using opposite T Mobile and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| T Mobile vs. Samsung Electronics Co | T Mobile vs. Samsung Electronics Co | T Mobile vs. Hyundai Motor | T Mobile vs. Toyota Motor Corp |
| Systemair vs. Cornish Metals | Systemair vs. GoldMining | Systemair vs. GreenX Metals | Systemair vs. Leroy Seafood Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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