Correlation Between T Mobile and Autohome
Can any of the company-specific risk be diversified away by investing in both T Mobile and Autohome 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 T Mobile and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Autohome, you can compare the effects of market volatilities on T Mobile and Autohome 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 T Mobile with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Autohome.
Diversification Opportunities for T Mobile and Autohome
Pay attention - limited upside
The 3 months correlation between T1MU34 and Autohome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Autohome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome and T Mobile 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 T Mobile are associated (or correlated) with Autohome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome has no effect on the direction of T Mobile i.e., T Mobile and Autohome go up and down completely randomly.
Pair Corralation between T Mobile and Autohome
Assuming the 90 days trading horizon T Mobile is expected to generate 0.64 times more return on investment than Autohome. However, T Mobile is 1.57 times less risky than Autohome. It trades about 0.11 of its potential returns per unit of risk. Autohome is currently generating about 0.03 per unit of risk. If you would invest 34,881 in T Mobile on January 24, 2025 and sell it today you would earn a total of 39,174 from holding T Mobile or generate 112.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 86.39% |
| Values | Daily Returns |
T Mobile vs. Autohome
Performance |
| Timeline |
| T Mobile |
| Autohome |
T Mobile and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Autohome
The main advantage of trading using opposite T Mobile and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Autohome 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 Autohome will offset losses from the drop in Autohome's long position.| T Mobile vs. Truist Financial | T Mobile vs. Sumitomo Mitsui Financial | T Mobile vs. Planet Fitness | T Mobile vs. Raymond James Financial, |
| Autohome vs. Uber Technologies | Autohome vs. Cognizant Technology Solutions | Autohome vs. Keysight Technologies, | Autohome vs. SSC Technologies Holdings, |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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