Correlation Between T-Mobile and PUBLIC STORAGE
Can any of the company-specific risk be diversified away by investing in both T-Mobile and PUBLIC STORAGE 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 PUBLIC STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and PUBLIC STORAGE PRFO, you can compare the effects of market volatilities on T-Mobile and PUBLIC STORAGE 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 PUBLIC STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and PUBLIC STORAGE.
Diversification Opportunities for T-Mobile and PUBLIC STORAGE
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between T-Mobile and PUBLIC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and PUBLIC STORAGE PRFO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUBLIC STORAGE PRFO 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 PUBLIC STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUBLIC STORAGE PRFO has no effect on the direction of T-Mobile i.e., T-Mobile and PUBLIC STORAGE go up and down completely randomly.
Pair Corralation between T-Mobile and PUBLIC STORAGE
Assuming the 90 days horizon T Mobile is expected to generate 1.39 times more return on investment than PUBLIC STORAGE. However, T-Mobile is 1.39 times more volatile than PUBLIC STORAGE PRFO. It trades about 0.08 of its potential returns per unit of risk. PUBLIC STORAGE PRFO is currently generating about 0.02 per unit of risk. If you would invest 12,986 in T Mobile on October 13, 2024 and sell it today you would earn a total of 8,089 from holding T Mobile or generate 62.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| T Mobile |
| PUBLIC STORAGE PRFO |
T-Mobile and PUBLIC STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and PUBLIC STORAGE
The main advantage of trading using opposite T-Mobile and PUBLIC STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, PUBLIC STORAGE 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 PUBLIC STORAGE will offset losses from the drop in PUBLIC STORAGE's long position.| T-Mobile vs. BG Foods | T-Mobile vs. DATAGROUP SE | T-Mobile vs. Datadog | T-Mobile vs. Alliance Data Systems |
| PUBLIC STORAGE vs. T MOBILE US | PUBLIC STORAGE vs. T Mobile | PUBLIC STORAGE vs. THAI BEVERAGE | PUBLIC STORAGE vs. Shenandoah Telecommunications |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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