Correlation Between TIM SA and T Mobile

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

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

Diversification Opportunities for TIM SA and T Mobile

0.32

Correlation Coefficient

TIM SA  T Mobile

Weak diversification

The 3 months correlation between TIM and T1MU34 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TIM SA and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile and TIM SA 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 TIM SA 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 TIM SA i.e., TIM SA and T Mobile go up and down completely randomly.

Pair Corralation between TIM SA and T Mobile

Assuming the 90 days trading horizon TIM SA is expected to under-perform the T Mobile. In addition to that, TIM SA is 6.19 times more volatile than T Mobile. It trades about -0.11 of its total potential returns per unit of risk. T Mobile is currently generating about -0.09 per unit of volatility. If you would invest  73,870  in T Mobile on April 23, 2025 and sell it today you would lose (9,123) from holding T Mobile or give up 12.35% of portfolio value over 90 days.

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

TIM SA  vs.  T Mobile

TIM SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days TIM SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

T Mobile

Risk-Adjusted Performance

Very Weak

Over the last 90 days T Mobile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with TIM SA and T Mobile

The main advantage of trading using opposite TIM SA and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIM SA 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 TIM SA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.