Correlation Between T Mobile and Exxon
Can any of the company-specific risk be diversified away by investing in both T Mobile and Exxon 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 Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and Exxon Mobil Corp, you can compare the effects of market volatilities on T Mobile and Exxon 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 Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and Exxon.
Diversification Opportunities for T Mobile and Exxon
Very good diversification
The 3 months correlation between TMUS and Exxon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of T Mobile i.e., T Mobile and Exxon go up and down completely randomly.
Pair Corralation between T Mobile and Exxon
Given the investment horizon of 90 days T Mobile is expected to generate 2.89 times less return on investment than Exxon. But when comparing it to its historical volatility, T Mobile is 1.69 times less risky than Exxon. It trades about 0.18 of its potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 11,465 in Exxon Mobil Corp on January 25, 2024 and sell it today you would earn a total of 640.00 from holding Exxon Mobil Corp or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. Exxon Mobil Corp
Performance |
| Timeline |
| T Mobile |
| Exxon Mobil Corp |
T Mobile and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and Exxon
The main advantage of trading using opposite T Mobile and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| T Mobile vs. ATT Inc | T Mobile vs. Comcast Corp | T Mobile vs. Lumen Technologies | T Mobile vs. Verizon Communications |
| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |