Correlation Between T Mobile and St Galler
Can any of the company-specific risk be diversified away by investing in both T Mobile and St Galler 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 St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and St Galler Kantonalbank, you can compare the effects of market volatilities on T Mobile and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and St Galler.
Diversification Opportunities for T Mobile and St Galler
Weak diversification
The 3 months correlation between 0R2L and 0QQZ is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of T Mobile i.e., T Mobile and St Galler go up and down completely randomly.
Pair Corralation between T Mobile and St Galler
Assuming the 90 days trading horizon T Mobile is expected to generate 41.01 times more return on investment than St Galler. However, T Mobile is 41.01 times more volatile than St Galler Kantonalbank. It trades about 0.08 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.02 per unit of risk. If you would invest 17,012 in T Mobile on September 1, 2024 and sell it today you would earn a total of 7,682 from holding T Mobile or generate 45.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
T Mobile vs. St Galler Kantonalbank
Performance |
| Timeline |
| T Mobile |
| St Galler Kantonalbank |
T Mobile and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and St Galler
The main advantage of trading using opposite T Mobile and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| T Mobile vs. Intuitive Investments Group | T Mobile vs. Discover Financial Services | T Mobile vs. Bankers Investment Trust | T Mobile vs. Sydbank |
| St Galler vs. Uniper SE | St Galler vs. Mulberry Group PLC | St Galler vs. London Security Plc | St Galler vs. Triad Group PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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