Correlation Between Intouch Holdings and T-Mobile
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings 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 Intouch Holdings and T-Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and T Mobile, you can compare the effects of market volatilities on Intouch Holdings 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 Intouch Holdings with a short position of T-Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and T-Mobile.
Diversification Opportunities for Intouch Holdings and T-Mobile
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intouch and T-Mobile is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile and Intouch Holdings 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 Intouch Holdings Public 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 Intouch Holdings i.e., Intouch Holdings and T-Mobile go up and down completely randomly.
Pair Corralation between Intouch Holdings and T-Mobile
Assuming the 90 days trading horizon Intouch Holdings is expected to generate 1.1 times less return on investment than T-Mobile. In addition to that, Intouch Holdings is 1.33 times more volatile than T Mobile. It trades about 0.15 of its total potential returns per unit of risk. T Mobile is currently generating about 0.21 per unit of volatility. If you would invest 14,926 in T Mobile on September 3, 2024 and sell it today you would earn a total of 8,284 from holding T Mobile or generate 55.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. T Mobile
Performance |
| Timeline |
| Intouch Holdings Public |
| T Mobile |
Intouch Holdings and T-Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and T-Mobile
The main advantage of trading using opposite Intouch Holdings and T-Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings 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.| Intouch Holdings vs. T Mobile | Intouch Holdings vs. China Mobile Limited | Intouch Holdings vs. ATT Inc | Intouch Holdings vs. Nippon Telegraph and |
| T-Mobile vs. Sims Metal Management | T-Mobile vs. Virtus Investment Partners | T-Mobile vs. CeoTronics AG | T-Mobile vs. PennantPark Investment |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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