Correlation Between T Mobile and KT
Can any of the company-specific risk be diversified away by investing in both T Mobile and KT 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 KT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and KT Corporation, you can compare the effects of market volatilities on T Mobile and KT 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 KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and KT.
Diversification Opportunities for T Mobile and KT
Poor diversification
The 3 months correlation between TMUS and KT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation 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 KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of T Mobile i.e., T Mobile and KT go up and down completely randomly.
Pair Corralation between T Mobile and KT
Given the investment horizon of 90 days T Mobile is expected to generate 0.74 times more return on investment than KT. However, T Mobile is 1.34 times less risky than KT. It trades about 0.1 of its potential returns per unit of risk. KT Corporation is currently generating about 0.04 per unit of risk. If you would invest 13,690 in T Mobile on September 12, 2024 and sell it today you would earn a total of 9,660 from holding T Mobile or generate 70.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. KT Corp.
Performance |
| Timeline |
| T Mobile |
| KT Corporation |
T Mobile and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and KT
The main advantage of trading using opposite T Mobile and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, KT 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 KT will offset losses from the drop in KT's long position.| T Mobile vs. Victory Integrity Smallmid Cap | T Mobile vs. Hilton Worldwide Holdings | T Mobile vs. NVIDIA | T Mobile vs. JPMorgan Chase 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |