Correlation Between T-MOBILE and Jenoptik
Can any of the company-specific risk be diversified away by investing in both T-MOBILE and Jenoptik 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 Jenoptik 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 Jenoptik AG, you can compare the effects of market volatilities on T-MOBILE and Jenoptik 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 Jenoptik. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-MOBILE and Jenoptik.
Diversification Opportunities for T-MOBILE and Jenoptik
Average diversification
The 3 months correlation between T-MOBILE and Jenoptik is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE US and Jenoptik AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jenoptik AG 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 Jenoptik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jenoptik AG has no effect on the direction of T-MOBILE i.e., T-MOBILE and Jenoptik go up and down completely randomly.
Pair Corralation between T-MOBILE and Jenoptik
Assuming the 90 days trading horizon T MOBILE US is expected to generate 0.75 times more return on investment than Jenoptik. However, T MOBILE US is 1.34 times less risky than Jenoptik. It trades about 0.14 of its potential returns per unit of risk. Jenoptik AG is currently generating about -0.06 per unit of risk. If you would invest 21,246 in T MOBILE US on December 30, 2024 and sell it today you would earn a total of 3,664 from holding T MOBILE US or generate 17.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
T MOBILE US vs. Jenoptik AG
Performance |
Timeline |
T MOBILE US |
Jenoptik AG |
T-MOBILE and Jenoptik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with T-MOBILE and Jenoptik
The main advantage of trading using opposite T-MOBILE and Jenoptik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T-MOBILE position performs unexpectedly, Jenoptik 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 Jenoptik will offset losses from the drop in Jenoptik's long position.T-MOBILE vs. INTER CARS SA | T-MOBILE vs. SmarTone Telecommunications Holdings | T-MOBILE vs. Commercial Vehicle Group | T-MOBILE vs. Rayonier Advanced Materials |
Jenoptik vs. CANON MARKETING JP | Jenoptik vs. SUN ART RETAIL | Jenoptik vs. Singapore Airlines Limited | Jenoptik vs. Canon Marketing Japan |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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