Correlation Between T-Mobile and Quebecor

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

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

Diversification Opportunities for T-Mobile and Quebecor

-0.79

Correlation Coefficient

T-Mobile  Quebecor

Pay attention - limited upside

The 3 months correlation between T-Mobile and Quebecor is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of T-Mobile i.e., T-Mobile and Quebecor go up and down completely randomly.

Pair Corralation between T-Mobile and Quebecor

Assuming the 90 days horizon T Mobile is expected to under-perform the Quebecor. In addition to that, T-Mobile is 2.08 times more volatile than Quebecor. It trades about -0.09 of its total potential returns per unit of risk. Quebecor is currently generating about 0.14 per unit of volatility. If you would invest  2,279  in Quebecor on April 22, 2025 and sell it today you would earn a total of  201.00  from holding Quebecor or generate 8.82% return on investment over 90 days.

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

T Mobile  vs.  Quebecor

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 fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Quebecor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quebecor are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Quebecor may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with T-Mobile and Quebecor

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

The idea behind T Mobile and Quebecor 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.