Correlation Between T-Mobile and FIH MOBILE
Can any of the company-specific risk be diversified away by investing in both T-Mobile and FIH 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 T-Mobile and FIH MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and FIH MOBILE, you can compare the effects of market volatilities on T-Mobile and FIH 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 T-Mobile with a short position of FIH MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-Mobile and FIH MOBILE.
Diversification Opportunities for T-Mobile and FIH MOBILE
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between T-Mobile and FIH is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and FIH MOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH MOBILE and T-Mobile 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 T Mobile are associated (or correlated) with FIH MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIH MOBILE has no effect on the direction of T-Mobile i.e., T-Mobile and FIH MOBILE go up and down completely randomly.
Pair Corralation between T-Mobile and FIH MOBILE
Assuming the 90 days horizon T Mobile is expected to under-perform the FIH MOBILE. In addition to that, T-Mobile is 1.01 times more volatile than FIH MOBILE. It trades about -0.03 of its total potential returns per unit of risk. FIH MOBILE is currently generating about 0.24 per unit of volatility. If you would invest 10.00 in FIH MOBILE on October 10, 2024 and sell it today you would earn a total of 1.00 from holding FIH MOBILE or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
T Mobile vs. FIH MOBILE
Performance |
Timeline |
T Mobile |
FIH MOBILE |
T-Mobile and FIH MOBILE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with T-Mobile and FIH MOBILE
The main advantage of trading using opposite T-Mobile and FIH MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-Mobile position performs unexpectedly, FIH 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 FIH MOBILE will offset losses from the drop in FIH MOBILE's long position.T-Mobile vs. CNVISION MEDIA | T-Mobile vs. PLAYTECH | T-Mobile vs. Nexstar Media Group | T-Mobile vs. Hollywood Bowl Group |
FIH MOBILE vs. Spirent Communications plc | FIH MOBILE vs. Singapore Telecommunications Limited | FIH MOBILE vs. COVIVIO HOTELS INH | FIH MOBILE vs. Dalata Hotel Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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