Correlation Between Takkt AG and T-MOBILE
Can any of the company-specific risk be diversified away by investing in both Takkt AG and T-MOBILE 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 Takkt AG and T-MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takkt AG and T MOBILE INCDL 00001, you can compare the effects of market volatilities on Takkt AG and T-MOBILE 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 Takkt AG with a short position of T-MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takkt AG and T-MOBILE.
Diversification Opportunities for Takkt AG and T-MOBILE
Pay attention - limited upside
The 3 months correlation between Takkt and T-MOBILE is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Takkt AG and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL and Takkt AG 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 Takkt AG are associated (or correlated) with T-MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE INCDL has no effect on the direction of Takkt AG i.e., Takkt AG and T-MOBILE go up and down completely randomly.
Pair Corralation between Takkt AG and T-MOBILE
Assuming the 90 days trading horizon Takkt AG is expected to under-perform the T-MOBILE. In addition to that, Takkt AG is 1.7 times more volatile than T MOBILE INCDL 00001. It trades about -0.06 of its total potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.17 per unit of volatility. If you would invest 11,847 in T MOBILE INCDL 00001 on September 4, 2024 and sell it today you would earn a total of 11,488 from holding T MOBILE INCDL 00001 or generate 96.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.59% |
| Values | Daily Returns |
Takkt AG vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| Takkt AG |
| T MOBILE INCDL |
Takkt AG and T-MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takkt AG and T-MOBILE
The main advantage of trading using opposite Takkt AG and T-MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takkt AG position performs unexpectedly, T-MOBILE 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 T-MOBILE will offset losses from the drop in T-MOBILE's long position.| Takkt AG vs. Hyatt Hotels | Takkt AG vs. CARSALESCOM | Takkt AG vs. InterContinental Hotels Group | Takkt AG vs. CarsalesCom |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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