Correlation Between T-Mobile and G III
Can any of the company-specific risk be diversified away by investing in both T-Mobile and G III 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 G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and G III Apparel Group, you can compare the effects of market volatilities on T-Mobile and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and G III.
Diversification Opportunities for T-Mobile and G III
Very good diversification
The 3 months correlation between T-Mobile and GI4 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of T-Mobile i.e., T-Mobile and G III go up and down completely randomly.
Pair Corralation between T-Mobile and G III
Assuming the 90 days horizon T Mobile is expected to generate 1.19 times more return on investment than G III. However, T-Mobile is 1.19 times more volatile than G III Apparel Group. It trades about 0.03 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.38 per unit of risk. If you would invest 24,496 in T Mobile on December 12, 2024 and sell it today you would earn a total of 289.00 from holding T Mobile or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. G III Apparel Group
Performance |
| Timeline |
| T Mobile |
| G III Apparel |
T-Mobile and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and G III
The main advantage of trading using opposite T-Mobile and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| T-Mobile vs. Liberty Broadband | ||
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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