Correlation Between TIM Participacoes and DISH Network

Can any of the company-specific risk be diversified away by investing in both TIM Participacoes and DISH Network 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 TIM Participacoes and DISH Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TIM Participacoes SA and DISH Network, you can compare the effects of market volatilities on TIM Participacoes and DISH Network 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 TIM Participacoes with a short position of DISH Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIM Participacoes and DISH Network.

Diversification Opportunities for TIM Participacoes and DISH Network

0.18

Correlation Coefficient

TIM Participacoes  DISH Network

Average diversification

The 3 months correlation between TIM and DISH is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TIM Participacoes SA and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network and TIM Participacoes 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 TIM Participacoes SA are associated (or correlated) with DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of TIM Participacoes i.e., TIM Participacoes and DISH Network go up and down completely randomly.

Pair Corralation between TIM Participacoes and DISH Network

If you would invest  776.00  in DISH Network on September 28, 2024 and sell it today you would earn a total of  0.00  from holding DISH Network or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

TIM Participacoes SA  vs.  DISH Network

TIM Participacoes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TIM Participacoes SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

DISH Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DISH Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DISH Network is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with TIM Participacoes and DISH Network

The main advantage of trading using opposite TIM Participacoes and DISH Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIM Participacoes position performs unexpectedly, DISH Network 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 DISH Network will offset losses from the drop in DISH Network's long position.

The idea behind TIM Participacoes SA and DISH Network 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..