Correlation Between Panther Metals and T Mobile
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and T Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and T Mobile, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and T Mobile.
Diversification Opportunities for Panther Metals and T Mobile
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Panther and 0R2L is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile and Panther Metals 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 Panther Metals PLC 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 has no effect on the direction of Panther Metals i.e., Panther Metals and T Mobile go up and down completely randomly.
Pair Corralation between Panther Metals and T Mobile
Assuming the 90 days trading horizon Panther Metals is expected to generate 33.29 times less return on investment than T Mobile. But when comparing it to its historical volatility, Panther Metals PLC is 9.55 times less risky than T Mobile. It trades about 0.03 of its potential returns per unit of risk. T Mobile is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19,953 in T Mobile on September 3, 2024 and sell it today you would earn a total of 4,741 from holding T Mobile or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Panther Metals PLC vs. T Mobile
Performance |
| Timeline |
| Panther Metals PLC |
| T Mobile |
Panther Metals and T Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and T Mobile
The main advantage of trading using opposite Panther Metals and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. Greenroc Mining PLC | Panther Metals vs. Playtech Plc | Panther Metals vs. Telecom Italia SpA | Panther Metals vs. Wheaton Precious Metals |
| T Mobile vs. Catalyst Media Group | T Mobile vs. CATLIN GROUP | T Mobile vs. Tamburi Investment Partners | T Mobile vs. Magnora ASA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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