Correlation Between DISH Network and T Mobile

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

By analyzing existing cross correlation between DISH Network and T Mobile, you can compare the effects of market volatilities on DISH Network and T 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 DISH Network with a short position of T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of DISH Network and T Mobile.

Diversification Opportunities for DISH Network and T Mobile

-0.04

Correlation Coefficient

DISH Network  T Mobile

Good diversification

The 3 months correlation between DISH and TMUS is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding DISH Network and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile and DISH Network 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 DISH Network are associated (or correlated) with T Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of DISH Network i.e., DISH Network and T Mobile go up and down completely randomly.

Pair Corralation between DISH Network and T Mobile

If you would invest  15,654  in T Mobile on September 4, 2024 and sell it today you would earn a total of  8,831  from holding T Mobile or generate 56.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.4%
Values	Daily Returns

DISH Network  vs.  T Mobile

DISH Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DISH Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DISH Network is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

T Mobile

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Mobile are ranked lower than 20 (%) 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.

Pair Trading with DISH Network and T Mobile

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

The idea behind DISH Network and T Mobile 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.