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 INCDL 00001 and Public Storage, 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
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TM5 and Public is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 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 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 INCDL 00001 is expected to under-perform the Public Storage. In addition to that, T MOBILE is 1.08 times more volatile than Public Storage. It trades about -0.22 of its total potential returns per unit of risk. Public Storage is currently generating about -0.19 per unit of volatility. If you would invest 30,210 in Public Storage on October 14, 2024 and sell it today you would lose (1,800) from holding Public Storage or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T MOBILE INCDL 00001 vs. Public Storage
Performance |
| Timeline |
| T MOBILE INCDL |
| Public Storage |
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. Major Drilling Group | T MOBILE vs. PRECISION DRILLING P | T MOBILE vs. Pembina Pipeline Corp | T MOBILE vs. Canadian Utilities Limited |
| Public Storage vs. Fair Isaac Corp | Public Storage vs. Alaska Air Group | Public Storage vs. Ryanair Holdings plc | Public Storage vs. Southwest Airlines Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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