Correlation Between Singapore Telecommunicatio and T MOBILE
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio 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 Singapore Telecommunicatio and T MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Telecommunications Limited and T MOBILE INCDL 00001, you can compare the effects of market volatilities on Singapore Telecommunicatio 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 Singapore Telecommunicatio with a short position of T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and T MOBILE.
Diversification Opportunities for Singapore Telecommunicatio and T MOBILE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and TM5 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited 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 Singapore Telecommunicatio i.e., Singapore Telecommunicatio and T MOBILE go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and T MOBILE
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.73 times more return on investment than T MOBILE. However, Singapore Telecommunications Limited is 1.37 times less risky than T MOBILE. It trades about 0.06 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about -0.01 per unit of risk. If you would invest 221.00 in Singapore Telecommunications Limited on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Singapore Telecommunications Limited or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| Singapore Telecommunicatio |
| T MOBILE INCDL |
Singapore Telecommunicatio and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and T MOBILE
The main advantage of trading using opposite Singapore Telecommunicatio and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio 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.| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. China Mobile Limited | Singapore Telecommunicatio vs. Verizon Communications | Singapore Telecommunicatio vs. ATT Inc |
| T MOBILE vs. betterU Education Corp | T MOBILE vs. Goodyear Tire Rubber | T MOBILE vs. G8 EDUCATION | T MOBILE vs. STRAYER EDUCATION |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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