Correlation Between T-Mobile and Freenet AG
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By analyzing existing cross correlation between T Mobile and freenet AG, you can compare the effects of market volatilities on T-Mobile and Freenet AG 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 Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and Freenet AG.
Diversification Opportunities for T-Mobile and Freenet AG
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between T-Mobile and Freenet is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG 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 Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of T-Mobile i.e., T-Mobile and Freenet AG go up and down completely randomly.
Pair Corralation between T-Mobile and Freenet AG
Assuming the 90 days horizon T Mobile is expected to generate 1.43 times more return on investment than Freenet AG. However, T-Mobile is 1.43 times more volatile than freenet AG. It trades about 0.28 of its potential returns per unit of risk. freenet AG is currently generating about 0.14 per unit of risk. If you would invest 17,820 in T Mobile on September 3, 2024 and sell it today you would earn a total of 5,390 from holding T Mobile or generate 30.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. freenet AG
Performance |
| Timeline |
| T Mobile |
| freenet AG |
T-Mobile and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and Freenet AG
The main advantage of trading using opposite T-Mobile and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.| T-Mobile vs. Sims Metal Management | T-Mobile vs. Virtus Investment Partners | T-Mobile vs. CeoTronics AG | T-Mobile vs. PennantPark Investment |
| Freenet AG vs. CAL MAINE FOODS | Freenet AG vs. TYSON FOODS A | Freenet AG vs. LIFEWAY FOODS | Freenet AG vs. GOLD ROAD RES |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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