Correlation Between T-Mobile and United Internet
Can any of the company-specific risk be diversified away by investing in both T-Mobile and United Internet 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 United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and United Internet AG, you can compare the effects of market volatilities on T-Mobile and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and United Internet.
Diversification Opportunities for T-Mobile and United Internet
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between T-Mobile and United is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of T-Mobile i.e., T-Mobile and United Internet go up and down completely randomly.
Pair Corralation between T-Mobile and United Internet
Assuming the 90 days horizon T Mobile is expected to generate 0.57 times more return on investment than United Internet. However, T Mobile is 1.75 times less risky than United Internet. It trades about 0.09 of its potential returns per unit of risk. United Internet AG is currently generating about 0.0 per unit of risk. If you would invest 13,027 in T Mobile on September 3, 2024 and sell it today you would earn a total of 10,183 from holding T Mobile or generate 78.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. United Internet AG
Performance |
| Timeline |
| T Mobile |
| United Internet AG |
T-Mobile and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T-Mobile and United Internet
The main advantage of trading using opposite T-Mobile and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet'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 |
| United Internet vs. T Mobile | United Internet vs. China Mobile Limited | United Internet vs. ATT Inc | United Internet vs. Nippon Telegraph and |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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