Correlation Between T Mobile and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both T Mobile and Zegona Communications 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 Zegona Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Zegona Communications Plc, you can compare the effects of market volatilities on T Mobile and Zegona Communications 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 Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Zegona Communications.
Diversification Opportunities for T Mobile and Zegona Communications
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 0R2L and Zegona is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications Plc 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 Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of T Mobile i.e., T Mobile and Zegona Communications go up and down completely randomly.
Pair Corralation between T Mobile and Zegona Communications
Assuming the 90 days trading horizon T Mobile is expected to generate 1.21 times less return on investment than Zegona Communications. But when comparing it to its historical volatility, T Mobile is 2.62 times less risky than Zegona Communications. It trades about 0.31 of its potential returns per unit of risk. Zegona Communications Plc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 32,600 in Zegona Communications Plc on August 28, 2024 and sell it today you would earn a total of 2,600 from holding Zegona Communications Plc or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. Zegona Communications Plc
Performance |
| Timeline |
| T Mobile |
| Zegona Communications Plc |
T Mobile and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Zegona Communications
The main advantage of trading using opposite T Mobile and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' 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 |
| Zegona Communications vs. SupplyMe Capital PLC | Zegona Communications vs. Premier African Minerals | Zegona Communications vs. SANTANDER UK 8 | Zegona Communications vs. Vodafone 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |