Correlation Between Addtech AB and T MOBILE
Can any of the company-specific risk be diversified away by investing in both Addtech AB and T MOBILE 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 Addtech AB and T MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addtech AB and T MOBILE INCDL 00001, you can compare the effects of market volatilities on Addtech AB and T MOBILE 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 Addtech AB with a short position of T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and T MOBILE.
Diversification Opportunities for Addtech AB and T MOBILE
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Addtech and TM5 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL and Addtech AB 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 Addtech AB are associated (or correlated) with T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE INCDL has no effect on the direction of Addtech AB i.e., Addtech AB and T MOBILE go up and down completely randomly.
Pair Corralation between Addtech AB and T MOBILE
Assuming the 90 days trading horizon Addtech AB is expected to generate 1.03 times more return on investment than T MOBILE. However, Addtech AB is 1.03 times more volatile than T MOBILE INCDL 00001. It trades about -0.03 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about -0.13 per unit of risk. If you would invest 2,554 in Addtech AB on October 17, 2024 and sell it today you would lose (66.00) from holding Addtech AB or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| Addtech AB |
| T MOBILE INCDL |
Addtech AB and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and T MOBILE
The main advantage of trading using opposite Addtech AB and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| Addtech AB vs. Lendlease Group | Addtech AB vs. DATATEC LTD 2 | Addtech AB vs. Teradata Corp | Addtech AB vs. CN DATANG C |
| T MOBILE vs. VELA TECHNOLPLC LS 0001 | T MOBILE vs. BioNTech SE | T MOBILE vs. Sunny Optical Technology | T MOBILE vs. Addtech AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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