Correlation Between T Mobile and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both T Mobile and Mobilezone Holding 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 Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and mobilezone holding AG, you can compare the effects of market volatilities on T Mobile and Mobilezone Holding 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 Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Mobilezone Holding.
Diversification Opportunities for T Mobile and Mobilezone Holding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 0R2L and Mobilezone is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of T Mobile i.e., T Mobile and Mobilezone Holding go up and down completely randomly.
Pair Corralation between T Mobile and Mobilezone Holding
Assuming the 90 days trading horizon T Mobile is expected to generate 14.77 times more return on investment than Mobilezone Holding. However, T Mobile is 14.77 times more volatile than mobilezone holding AG. It trades about 0.05 of its potential returns per unit of risk. mobilezone holding AG is currently generating about 0.02 per unit of risk. If you would invest 12,738 in T Mobile on September 2, 2024 and sell it today you would earn a total of 11,956 from holding T Mobile or generate 93.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
T Mobile vs. mobilezone holding AG
Performance |
| Timeline |
| T Mobile |
| mobilezone holding |
T Mobile and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Mobilezone Holding
The main advantage of trading using opposite T Mobile and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| T Mobile vs. GoldMining | T Mobile vs. Scandic Hotels Group | T Mobile vs. Lundin Mining Corp | T Mobile vs. Greenroc Mining PLC |
| Mobilezone Holding vs. Uniper SE | Mobilezone Holding vs. Mulberry Group PLC | Mobilezone Holding vs. London Security Plc | Mobilezone Holding 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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