Correlation Between Mobilezone Holding and T-MOBILE

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

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

Diversification Opportunities for Mobilezone Holding and T-MOBILE

0.0

Correlation Coefficient

Mobilezone Holding  T-MOBILE

Pay attention - limited upside

The 3 months correlation between Mobilezone and T-MOBILE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US and Mobilezone Holding 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 Mobilezone Holding 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 US has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and T-MOBILE go up and down completely randomly.

Pair Corralation between Mobilezone Holding and T-MOBILE

Assuming the 90 days trading horizon Mobilezone Holding is expected to generate 6.49 times less return on investment than T-MOBILE. But when comparing it to its historical volatility, Mobilezone Holding AG is 2.23 times less risky than T-MOBILE. It trades about 0.05 of its potential returns per unit of risk. T MOBILE US is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  12,782  in T MOBILE US on December 2, 2024 and sell it today you would earn a total of  12,963  from holding T MOBILE US or generate 101.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

Mobilezone Holding AG  vs.  T MOBILE US

Mobilezone Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobilezone Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

T MOBILE US

Risk-Adjusted Performance

OK

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

Pair Trading with Mobilezone Holding and T-MOBILE

The main advantage of trading using opposite Mobilezone Holding and T-MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding 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 Mobilezone Holding AG and T MOBILE US 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.