Correlation Between NTG Nordic and T-MOBILE

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

By analyzing existing cross correlation between NTG Nordic Transport and T MOBILE INCDL 00001, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of T-MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and T-MOBILE.

Diversification Opportunities for NTG Nordic and T-MOBILE

0.13

Correlation Coefficient

NTG Nordic  T-MOBILE

Average diversification

The 3 months correlation between NTG and T-MOBILE is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport 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 NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and T-MOBILE go up and down completely randomly.

Pair Corralation between NTG Nordic and T-MOBILE

Assuming the 90 days trading horizon NTG Nordic is expected to generate 2.8 times less return on investment than T-MOBILE. But when comparing it to its historical volatility, NTG Nordic Transport is 1.14 times less risky than T-MOBILE. It trades about 0.05 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  21,182  in T MOBILE INCDL 00001 on December 30, 2024 and sell it today you would earn a total of  3,373  from holding T MOBILE INCDL 00001 or generate 15.92% return on investment over 90 days.

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

NTG Nordic Transport  vs.  T MOBILE INCDL 00001

NTG Nordic Transport

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NTG Nordic Transport are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, NTG Nordic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

T MOBILE INCDL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE INCDL 00001 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, T-MOBILE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NTG Nordic and T-MOBILE

The main advantage of trading using opposite NTG Nordic and T-MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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 NTG Nordic Transport and T MOBILE INCDL 00001 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.