Correlation Between T Mobile and TIM Participacoes
Can any of the company-specific risk be diversified away by investing in both T Mobile 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 T Mobile and TIM Participacoes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and TIM Participacoes SA, you can compare the effects of market volatilities on T Mobile 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 T Mobile with a short position of TIM Participacoes. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and TIM Participacoes.
Diversification Opportunities for T Mobile and TIM Participacoes
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TMUS and TIM is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and TIM Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIM Participacoes 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 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 T Mobile i.e., T Mobile and TIM Participacoes go up and down completely randomly.
Pair Corralation between T Mobile and TIM Participacoes
Given the investment horizon of 90 days T Mobile is expected to under-perform the TIM Participacoes. But the stock apears to be less risky and, when comparing its historical volatility, T Mobile is 1.05 times less risky than TIM Participacoes. The stock trades about -0.19 of its potential returns per unit of risk. The TIM Participacoes SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,333 in TIM Participacoes SA on August 28, 2025 and sell it today you would lose (29.00) from holding TIM Participacoes SA or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. TIM Participacoes SA
Performance |
| Timeline |
| T Mobile |
| TIM Participacoes |
T Mobile and TIM Participacoes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and TIM Participacoes
The main advantage of trading using opposite T Mobile and TIM Participacoes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile 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.| T Mobile vs. Cleantech Power Corp | T Mobile vs. Jones Soda Co | T Mobile vs. Amexdrug | T Mobile vs. Medical Connections Holdings |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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