Correlation Between T MOBILE and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both T MOBILE and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T MOBILE INCDL 00001 and ALBIS LEASING AG, you can compare the effects of market volatilities on T MOBILE and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of T MOBILE and ALBIS LEASING.
Diversification Opportunities for T MOBILE and ALBIS LEASING
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TM5 and ALBIS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING 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 INCDL 00001 are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of T MOBILE i.e., T MOBILE and ALBIS LEASING go up and down completely randomly.
Pair Corralation between T MOBILE and ALBIS LEASING
Assuming the 90 days trading horizon T MOBILE INCDL 00001 is expected to generate 1.54 times more return on investment than ALBIS LEASING. However, T MOBILE is 1.54 times more volatile than ALBIS LEASING AG. It trades about 0.08 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of risk. If you would invest 13,007 in T MOBILE INCDL 00001 on October 14, 2024 and sell it today you would earn a total of 7,528 from holding T MOBILE INCDL 00001 or generate 57.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.41% |
| Values | Daily Returns |
T MOBILE INCDL 00001 vs. ALBIS LEASING AG
Performance |
| Timeline |
| T MOBILE INCDL |
| ALBIS LEASING AG |
T MOBILE and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T MOBILE and ALBIS LEASING
The main advantage of trading using opposite T MOBILE and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T MOBILE position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| T MOBILE vs. Shenandoah Telecommunications | T MOBILE vs. SPARTAN STORES | T MOBILE vs. Cairo Communication SpA | T MOBILE vs. National Retail Properties |
| ALBIS LEASING vs. INDO RAMA SYNTHETIC | ALBIS LEASING vs. Charter Communications | ALBIS LEASING vs. TRI CHEMICAL LABORATINC | ALBIS LEASING vs. T MOBILE INCDL 00001 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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