Correlation Between Carnegie Clean and T-MOBILE

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Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and T-MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and T MOBILE US, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of T-MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and T-MOBILE.

Diversification Opportunities for Carnegie Clean and T-MOBILE

CarnegieT-MOBILEDiversified AwayCarnegieT-MOBILEDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Carnegie and T-MOBILE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US and Carnegie Clean 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 Carnegie Clean Energy 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 US has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and T-MOBILE go up and down completely randomly.

Pair Corralation between Carnegie Clean and T-MOBILE

Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the T-MOBILE. In addition to that, Carnegie Clean is 2.27 times more volatile than T MOBILE US. It trades about -0.1 of its total potential returns per unit of risk. T MOBILE US is currently generating about 0.32 per unit of volatility. If you would invest  22,735  in T MOBILE US on November 30, 2024 and sell it today you would earn a total of  2,625  from holding T MOBILE US or generate 11.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Carnegie Clean Energy  vs.  T MOBILE US

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-5051015
JavaScript chart by amCharts 3.21.15CNM1 TM5
       Timeline  
Carnegie Clean Energy 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Carnegie Clean Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Carnegie Clean is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0190.020.0210.0220.023
T MOBILE US 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE US are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, T-MOBILE may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb210220230240250260

Carnegie Clean and T-MOBILE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.58-4.93-3.28-1.63-0.0271.543.164.786.48.02 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15CNM1 TM5
       Returns  

Pair Trading with Carnegie Clean and T-MOBILE

The main advantage of trading using opposite Carnegie Clean and T-MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.
The idea behind Carnegie Clean Energy and T MOBILE US pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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