Correlation Between T MOBILE and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both T MOBILE and NTG Nordic 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 NTG Nordic 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 NTG Nordic Transport, you can compare the effects of market volatilities on T MOBILE and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of T MOBILE and NTG Nordic.
Diversification Opportunities for T MOBILE and NTG Nordic
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between TM5 and NTG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of T MOBILE i.e., T MOBILE and NTG Nordic go up and down completely randomly.
Pair Corralation between T MOBILE and NTG Nordic
Assuming the 90 days trading horizon T MOBILE INCDL 00001 is expected to generate 0.45 times more return on investment than NTG Nordic. However, T MOBILE INCDL 00001 is 2.22 times less risky than NTG Nordic. It trades about 0.16 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.03 per unit of risk. If you would invest 11,724 in T MOBILE INCDL 00001 on September 12, 2024 and sell it today you would earn a total of 10,606 from holding T MOBILE INCDL 00001 or generate 90.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.58% |
| Values | Daily Returns |
T MOBILE INCDL 00001 vs. NTG Nordic Transport
Performance |
| Timeline |
| T MOBILE INCDL |
| NTG Nordic Transport |
T MOBILE and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T MOBILE and NTG Nordic
The main advantage of trading using opposite T MOBILE and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T MOBILE position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| T MOBILE vs. VARIOUS EATERIES LS | T MOBILE vs. Hemisphere Energy Corp | T MOBILE vs. Darden Restaurants | T MOBILE vs. Ribbon Communications |
| NTG Nordic vs. Gold Road Resources | NTG Nordic vs. FORMPIPE SOFTWARE AB | NTG Nordic vs. GOLD ROAD RES | NTG Nordic vs. Broadcom |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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