Correlation Between America Movil and TIM Participacoes
Can any of the company-specific risk be diversified away by investing in both America Movil and TIM Participacoes 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 America Movil and TIM Participacoes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between America Movil SAB and TIM Participacoes SA, you can compare the effects of market volatilities on America Movil and TIM Participacoes 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 America Movil with a short position of TIM Participacoes. Check out your portfolio center. Please also check ongoing floating volatility patterns of America Movil and TIM Participacoes.
Diversification Opportunities for America Movil and TIM Participacoes
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between America and TIM is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding America Movil SAB and TIM Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIM Participacoes and America Movil 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 America Movil SAB are associated (or correlated) with TIM Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIM Participacoes has no effect on the direction of America Movil i.e., America Movil and TIM Participacoes go up and down completely randomly.
Pair Corralation between America Movil and TIM Participacoes
Considering the 90-day investment horizon America Movil SAB is expected to generate 0.94 times more return on investment than TIM Participacoes. However, America Movil SAB is 1.06 times less risky than TIM Participacoes. It trades about 0.23 of its potential returns per unit of risk. TIM Participacoes SA is currently generating about 0.15 per unit of risk. If you would invest 1,918 in America Movil SAB on August 21, 2025 and sell it today you would earn a total of 424.00 from holding America Movil SAB or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
America Movil SAB vs. TIM Participacoes SA
Performance |
| Timeline |
| America Movil SAB |
| TIM Participacoes |
America Movil and TIM Participacoes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with America Movil and TIM Participacoes
The main advantage of trading using opposite America Movil and TIM Participacoes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if America Movil position performs unexpectedly, TIM Participacoes 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 TIM Participacoes will offset losses from the drop in TIM Participacoes' long position.| America Movil vs. KDDI Corp PK | America Movil vs. Singapore Telecommunications PK | America Movil vs. SwissCom AG | America Movil vs. Advanced Info Service |
| TIM Participacoes vs. KT Corporation | TIM Participacoes vs. Liberty Broadband Srs | TIM Participacoes vs. SK Telecom Co | TIM Participacoes vs. Frontier Communications Parent |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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