Correlation Between T Mobile and Oi SA
Can any of the company-specific risk be diversified away by investing in both T Mobile and Oi SA 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 Oi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Oi SA, you can compare the effects of market volatilities on T Mobile and Oi SA 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 Oi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Oi SA.
Diversification Opportunities for T Mobile and Oi SA
Very good diversification
The 3 months correlation between T1MU34 and OIBR3 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Oi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oi SA 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 Oi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oi SA has no effect on the direction of T Mobile i.e., T Mobile and Oi SA go up and down completely randomly.
Pair Corralation between T Mobile and Oi SA
Assuming the 90 days trading horizon T Mobile is expected to generate 0.59 times more return on investment than Oi SA. However, T Mobile is 1.69 times less risky than Oi SA. It trades about 0.25 of its potential returns per unit of risk. Oi SA is currently generating about 0.12 per unit of risk. If you would invest 64,000 in T Mobile on November 9, 2024 and sell it today you would earn a total of 6,555 from holding T Mobile or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. Oi SA
Performance |
| Timeline |
| T Mobile |
| Oi SA |
T Mobile and Oi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Oi SA
The main advantage of trading using opposite T Mobile and Oi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Oi SA 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 Oi SA will offset losses from the drop in Oi SA's long position.| T Mobile vs. Citizens Financial Group, | T Mobile vs. Jefferies Financial Group | T Mobile vs. Bank of America | T Mobile vs. Sumitomo Mitsui Financial |
| Oi SA vs. IRB Brasil Resseguros SA | Oi SA vs. Magazine Luiza SA | Oi SA vs. Cogna Educao SA | Oi SA vs. Oi SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |