Correlation Between SPARTAN STORES and T MOBILE
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES 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 SPARTAN STORES and T MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and T MOBILE INCDL 00001, you can compare the effects of market volatilities on SPARTAN STORES 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 SPARTAN STORES with a short position of T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and T MOBILE.
Diversification Opportunities for SPARTAN STORES and T MOBILE
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPARTAN and TM5 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES 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 SPARTAN STORES i.e., SPARTAN STORES and T MOBILE go up and down completely randomly.
Pair Corralation between SPARTAN STORES and T MOBILE
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the T MOBILE. In addition to that, SPARTAN STORES is 1.48 times more volatile than T MOBILE INCDL 00001. It trades about -0.04 of its total potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.08 per unit of volatility. If you would invest 13,003 in T MOBILE INCDL 00001 on October 28, 2024 and sell it today you would earn a total of 7,642 from holding T MOBILE INCDL 00001 or generate 58.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.41% |
| Values | Daily Returns |
SPARTAN STORES vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| SPARTAN STORES |
| T MOBILE INCDL |
SPARTAN STORES and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and T MOBILE
The main advantage of trading using opposite SPARTAN STORES and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES 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.| SPARTAN STORES vs. ANGLO ASIAN MINING | SPARTAN STORES vs. AGNC INVESTMENT | SPARTAN STORES vs. MAG SILVER | SPARTAN STORES vs. SLR Investment Corp |
| T MOBILE vs. NIGHTINGALE HEALTH EO | T MOBILE vs. PURETECH HEALTH PLC | T MOBILE vs. RCI Hospitality Holdings | T MOBILE vs. CARDINAL HEALTH |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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