Correlation Between T Mobile and Sony
Can any of the company-specific risk be diversified away by investing in both T Mobile and Sony 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 Sony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Sony Group, you can compare the effects of market volatilities on T Mobile and Sony 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 Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Sony.
Diversification Opportunities for T Mobile and Sony
Very weak diversification
The 3 months correlation between T1MU34 and Sony is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group 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 Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group has no effect on the direction of T Mobile i.e., T Mobile and Sony go up and down completely randomly.
Pair Corralation between T Mobile and Sony
Assuming the 90 days trading horizon T Mobile is expected to generate 0.57 times more return on investment than Sony. However, T Mobile is 1.77 times less risky than Sony. It trades about 0.37 of its potential returns per unit of risk. Sony Group is currently generating about 0.1 per unit of risk. If you would invest 56,315 in T Mobile on September 3, 2024 and sell it today you would earn a total of 17,561 from holding T Mobile or generate 31.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
T Mobile vs. Sony Group
Performance |
| Timeline |
| T Mobile |
| Sony Group |
T Mobile and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Sony
The main advantage of trading using opposite T Mobile and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Sony 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 Sony will offset losses from the drop in Sony's long position.| T Mobile vs. Verizon Communications | T Mobile vs. Telefnica Brasil SA | T Mobile vs. TIM SA | T Mobile vs. Oi SA |
| Sony vs. Bemobi Mobile Tech | Sony vs. Take Two Interactive Software | Sony vs. T Mobile | Sony vs. Verizon Communications |
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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