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 US 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
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TM5 and PUBLIC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE US 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 US 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 trading horizon T MOBILE US is expected to generate 1.22 times more return on investment than PUBLIC STORAGE. However, T MOBILE is 1.22 times more volatile than PUBLIC STORAGE PRFO. It trades about 0.13 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 11,892 in T MOBILE US on November 6, 2024 and sell it today you would earn a total of 11,118 from holding T MOBILE US or generate 93.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T MOBILE US vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| T MOBILE US |
| 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. Siemens Healthineers AG | T MOBILE vs. Lendlease Group | T MOBILE vs. OPKO HEALTH | T MOBILE vs. EPSILON HEALTHCARE LTD |
| PUBLIC STORAGE vs. Safestore Holdings plc | PUBLIC STORAGE vs. Airbus SE | PUBLIC STORAGE vs. BJs Restaurants | PUBLIC STORAGE vs. Walmart |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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