Correlation Between Brinker International and T Mobile

Can any of the company-specific risk be diversified away by investing in both Brinker International 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 Brinker International and T Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brinker International and T Mobile, you can compare the effects of market volatilities on Brinker International 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 Brinker International with a short position of T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and T Mobile.

Diversification Opportunities for Brinker International and T Mobile

0.32

Correlation Coefficient

Brinker International  T Mobile

Weak diversification

The 3 months correlation between Brinker and TMUS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile and Brinker International 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 Brinker International 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 has no effect on the direction of Brinker International i.e., Brinker International and T Mobile go up and down completely randomly.

Pair Corralation between Brinker International and T Mobile

Considering the 90-day investment horizon Brinker International is expected to generate 1.92 times more return on investment than T Mobile. However, Brinker International is 1.92 times more volatile than T Mobile. It trades about 0.1 of its potential returns per unit of risk. T Mobile is currently generating about 0.1 per unit of risk. If you would invest  13,227  in Brinker International on November 28, 2024 and sell it today you would earn a total of  2,356  from holding Brinker International or generate 17.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Brinker International  vs.  T Mobile

Brinker International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Brinker International unveiled solid returns over the last few months and may actually be approaching a breakup point.

T Mobile

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in T Mobile are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, T Mobile may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Brinker International and T Mobile

The main advantage of trading using opposite Brinker International and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International 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.

The idea behind Brinker International and T Mobile pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.