Correlation Between T-Mobile and Lendlease
Can any of the company-specific risk be diversified away by investing in both T-Mobile and Lendlease 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 Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Lendlease Group, you can compare the effects of market volatilities on T-Mobile and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and Lendlease.
Diversification Opportunities for T-Mobile and Lendlease
Poor diversification
The 3 months correlation between T-Mobile and Lendlease is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of T-Mobile i.e., T-Mobile and Lendlease go up and down completely randomly.
Pair Corralation between T-Mobile and Lendlease
Assuming the 90 days horizon T Mobile is expected to generate 1.16 times more return on investment than Lendlease. However, T-Mobile is 1.16 times more volatile than Lendlease Group. It trades about 0.32 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.07 per unit of risk. If you would invest 20,305 in T Mobile on November 7, 2024 and sell it today you would earn a total of 2,380 from holding T Mobile or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. Lendlease Group
Performance |
| Timeline |
| T Mobile |
| Lendlease Group |
T-Mobile and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and Lendlease
The main advantage of trading using opposite T-Mobile and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| T-Mobile vs. COLUMBIA SPORTSWEAR | T-Mobile vs. Rayonier Advanced Materials | T-Mobile vs. Summit Materials | T-Mobile vs. ANTA SPORTS PRODUCT |
| Lendlease vs. Haier Smart Home | Lendlease vs. KENEDIX OFFICE INV | Lendlease vs. INVITATION HOMES DL | Lendlease vs. G III Apparel Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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