Correlation Between TIM SA and Unifique Telecomunicaes
Can any of the company-specific risk be diversified away by investing in both TIM SA and Unifique Telecomunicaes 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 TIM SA and Unifique Telecomunicaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIM SA and Unifique Telecomunicaes SA, you can compare the effects of market volatilities on TIM SA and Unifique Telecomunicaes 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 TIM SA with a short position of Unifique Telecomunicaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIM SA and Unifique Telecomunicaes.
Diversification Opportunities for TIM SA and Unifique Telecomunicaes
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TIM and Unifique is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding TIM SA and Unifique Telecomunicaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifique Telecomunicaes and TIM SA 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 TIM SA are associated (or correlated) with Unifique Telecomunicaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifique Telecomunicaes has no effect on the direction of TIM SA i.e., TIM SA and Unifique Telecomunicaes go up and down completely randomly.
Pair Corralation between TIM SA and Unifique Telecomunicaes
Assuming the 90 days trading horizon TIM SA is expected to generate 0.99 times more return on investment than Unifique Telecomunicaes. However, TIM SA is 1.01 times less risky than Unifique Telecomunicaes. It trades about 0.05 of its potential returns per unit of risk. Unifique Telecomunicaes SA is currently generating about 0.03 per unit of risk. If you would invest 1,490 in TIM SA on October 24, 2024 and sell it today you would earn a total of 21.00 from holding TIM SA or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
TIM SA vs. Unifique Telecomunicaes SA
Performance |
| Timeline |
| TIM SA |
| Unifique Telecomunicaes |
TIM SA and Unifique Telecomunicaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIM SA and Unifique Telecomunicaes
The main advantage of trading using opposite TIM SA and Unifique Telecomunicaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIM SA position performs unexpectedly, Unifique Telecomunicaes 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 Unifique Telecomunicaes will offset losses from the drop in Unifique Telecomunicaes' long position.| TIM SA vs. Telefnica Brasil SA | TIM SA vs. Companhia Brasileira de | TIM SA vs. Natura Co Holding | TIM SA vs. Yduqs Participaes SA |
| Unifique Telecomunicaes vs. Tres Tentos Agroindustrial | Unifique Telecomunicaes vs. TAL Education Group | Unifique Telecomunicaes vs. Paycom Software | Unifique Telecomunicaes vs. Global X Funds |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |