Correlation Between TIM Participacoes and Lict
Can any of the company-specific risk be diversified away by investing in both TIM Participacoes and Lict 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 Lict 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 Lict Corporation, you can compare the effects of market volatilities on TIM Participacoes and Lict 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 Lict. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIM Participacoes and Lict.
Diversification Opportunities for TIM Participacoes and Lict
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TIM and Lict is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TIM Participacoes SA and Lict Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lict 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 Lict. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lict has no effect on the direction of TIM Participacoes i.e., TIM Participacoes and Lict go up and down completely randomly.
Pair Corralation between TIM Participacoes and Lict
If you would invest 1,204 in TIM Participacoes SA on December 17, 2024 and sell it today you would earn a total of 295.00 from holding TIM Participacoes SA or generate 24.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
TIM Participacoes SA vs. Lict Corp.
Performance |
Timeline |
TIM Participacoes |
Lict |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
TIM Participacoes and Lict Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TIM Participacoes and Lict
The main advantage of trading using opposite TIM Participacoes and Lict positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIM Participacoes position performs unexpectedly, Lict 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 Lict will offset losses from the drop in Lict's long position.TIM Participacoes vs. SK Telecom Co | TIM Participacoes vs. PLDT Inc ADR | TIM Participacoes vs. Liberty Broadband Srs | TIM Participacoes vs. Liberty Broadband Srs |
Lict vs. SK Telecom Co | Lict vs. TIM Participacoes SA | Lict vs. PLDT Inc ADR | Lict vs. Liberty Broadband Srs |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |