Correlation Between T-Mobile and Intouch Holdings
Can any of the company-specific risk be diversified away by investing in both T-Mobile and Intouch Holdings 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 Intouch Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Intouch Holdings Public, you can compare the effects of market volatilities on T-Mobile and Intouch Holdings 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 Intouch Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and Intouch Holdings.
Diversification Opportunities for T-Mobile and Intouch Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between T-Mobile and Intouch is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Intouch Holdings Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intouch Holdings Public 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 Intouch Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intouch Holdings Public has no effect on the direction of T-Mobile i.e., T-Mobile and Intouch Holdings go up and down completely randomly.
Pair Corralation between T-Mobile and Intouch Holdings
Assuming the 90 days horizon T Mobile is expected to generate 1.25 times more return on investment than Intouch Holdings. However, T-Mobile is 1.25 times more volatile than Intouch Holdings Public. It trades about 0.08 of its potential returns per unit of risk. Intouch Holdings Public is currently generating about -0.12 per unit of risk. If you would invest 20,828 in T Mobile on January 15, 2025 and sell it today you would earn a total of 2,397 from holding T Mobile or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.92% |
| Values | Daily Returns |
T Mobile vs. Intouch Holdings Public
Performance |
| Timeline |
| T Mobile |
| Intouch Holdings Public |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
T-Mobile and Intouch Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and Intouch Holdings
The main advantage of trading using opposite T-Mobile and Intouch Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, Intouch Holdings 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 Intouch Holdings will offset losses from the drop in Intouch Holdings' long position.| T-Mobile vs. Perseus Mining Limited | T-Mobile vs. TIANDE CHEMICAL | T-Mobile vs. Sanyo Chemical Industries | T-Mobile vs. Globex Mining Enterprises |
| Intouch Holdings vs. TELE2 AB UNSPADR12 | Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. Sino Land | Intouch Holdings vs. Medibank Private Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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