Correlation Between TIM SA and Lumen Technologies,

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

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

Diversification Opportunities for TIM SA and Lumen Technologies,

-0.8

Correlation Coefficient

TIM SA  Lumen Technologies,

Pay attention - limited upside

The 3 months correlation between TIM and Lumen is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding TIM SA and Lumen Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies, and TIM SA 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 SA are associated (or correlated) with Lumen Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies, has no effect on the direction of TIM SA i.e., TIM SA and Lumen Technologies, go up and down completely randomly.

Pair Corralation between TIM SA and Lumen Technologies,

Assuming the 90 days trading horizon TIM SA is expected to generate 0.43 times more return on investment than Lumen Technologies,. However, TIM SA is 2.34 times less risky than Lumen Technologies,. It trades about 0.14 of its potential returns per unit of risk. Lumen Technologies, is currently generating about -0.07 per unit of risk. If you would invest  1,483  in TIM SA on December 23, 2024 and sell it today you would earn a total of  253.00  from holding TIM SA or generate 17.06% return on investment over 90 days.

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

TIM SA  vs.  Lumen Technologies,

TIM SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TIM SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TIM SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lumen Technologies,

Risk-Adjusted Performance

Very Weak

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

Pair Trading with TIM SA and Lumen Technologies,

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

The idea behind TIM SA and Lumen Technologies, 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.