Correlation Between NTG Nordic and T MOBILE
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and T MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and T MOBILE INCDL 00001, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and T MOBILE.
Diversification Opportunities for NTG Nordic and T MOBILE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and TM5 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport 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 NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and T MOBILE go up and down completely randomly.
Pair Corralation between NTG Nordic and T MOBILE
Assuming the 90 days trading horizon NTG Nordic is expected to generate 21.38 times less return on investment than T MOBILE. In addition to that, NTG Nordic is 1.34 times more volatile than T MOBILE INCDL 00001. It trades about 0.01 of its total potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.22 per unit of volatility. If you would invest 19,639 in T MOBILE INCDL 00001 on September 12, 2024 and sell it today you would earn a total of 2,691 from holding T MOBILE INCDL 00001 or generate 13.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| NTG Nordic Transport |
| T MOBILE INCDL |
NTG Nordic and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and T MOBILE
The main advantage of trading using opposite NTG Nordic and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Gold Road Resources | NTG Nordic vs. FORMPIPE SOFTWARE AB | NTG Nordic vs. GOLD ROAD RES | NTG Nordic vs. Broadcom |
| T MOBILE vs. VARIOUS EATERIES LS | T MOBILE vs. Hemisphere Energy Corp | T MOBILE vs. Darden Restaurants | T MOBILE vs. Ribbon Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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