Correlation Between T-MOBILE and ANTA Sports

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

By analyzing existing cross correlation between T MOBILE INCDL 00001 and ANTA Sports Products, you can compare the effects of market volatilities on T-MOBILE and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of T-MOBILE and ANTA Sports.

Diversification Opportunities for T-MOBILE and ANTA Sports

0.65

Correlation Coefficient

T-MOBILE  ANTA Sports

Poor diversification

The 3 months correlation between T-MOBILE and ANTA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 INCDL 00001 are associated (or correlated) with ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of T-MOBILE i.e., T-MOBILE and ANTA Sports go up and down completely randomly.

Pair Corralation between T-MOBILE and ANTA Sports

Assuming the 90 days trading horizon T MOBILE INCDL 00001 is expected to generate 0.91 times more return on investment than ANTA Sports. However, T MOBILE INCDL 00001 is 1.09 times less risky than ANTA Sports. It trades about 0.12 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.07 per unit of risk. If you would invest  21,182  in T MOBILE INCDL 00001 on December 30, 2024 and sell it today you would earn a total of  3,373  from holding T MOBILE INCDL 00001 or generate 15.92% return on investment over 90 days.

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

T MOBILE INCDL 00001  vs.  ANTA Sports Products

T MOBILE INCDL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE INCDL 00001 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, T-MOBILE unveiled solid returns over the last few months and may actually be approaching a breakup point.

ANTA Sports Products

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, ANTA Sports may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with T-MOBILE and ANTA Sports

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

The idea behind T MOBILE INCDL 00001 and ANTA Sports Products 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.