Correlation Between T-MOBILE and ANGLO ASIAN

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

By analyzing existing cross correlation between T MOBILE US and ANGLO ASIAN MINING, you can compare the effects of market volatilities on T-MOBILE and ANGLO ASIAN 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 ANGLO ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-MOBILE and ANGLO ASIAN.

Diversification Opportunities for T-MOBILE and ANGLO ASIAN

0.81

Correlation Coefficient

T-MOBILE  ANGLO ASIAN

Very poor diversification

The 3 months correlation between T-MOBILE and ANGLO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE US and ANGLO ASIAN MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLO ASIAN MINING 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 US are associated (or correlated) with ANGLO ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLO ASIAN MINING has no effect on the direction of T-MOBILE i.e., T-MOBILE and ANGLO ASIAN go up and down completely randomly.

Pair Corralation between T-MOBILE and ANGLO ASIAN

Assuming the 90 days trading horizon T-MOBILE is expected to generate 1.11 times less return on investment than ANGLO ASIAN. But when comparing it to its historical volatility, T MOBILE US is 1.28 times less risky than ANGLO ASIAN. It trades about 0.1 of its potential returns per unit of risk. ANGLO ASIAN MINING is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  127.00  in ANGLO ASIAN MINING on December 23, 2024 and sell it today you would earn a total of  15.00  from holding ANGLO ASIAN MINING or generate 11.81% return on investment over 90 days.

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

T MOBILE US  vs.  ANGLO ASIAN MINING

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 uncertain basic indicators, T-MOBILE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ANGLO ASIAN MINING

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLO ASIAN MINING are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ANGLO ASIAN exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with T-MOBILE and ANGLO ASIAN

The main advantage of trading using opposite T-MOBILE and ANGLO ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-MOBILE position performs unexpectedly, ANGLO ASIAN 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 ANGLO ASIAN will offset losses from the drop in ANGLO ASIAN's long position.

The idea behind T MOBILE US and ANGLO ASIAN MINING 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.