Correlation Between SANOK RUBBER and ATT
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and ATT 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 SANOK RUBBER and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and ATT Inc, you can compare the effects of market volatilities on SANOK RUBBER and ATT 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 SANOK RUBBER with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and ATT.
Diversification Opportunities for SANOK RUBBER and ATT
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SANOK and ATT is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and ATT go up and down completely randomly.
Pair Corralation between SANOK RUBBER and ATT
Assuming the 90 days horizon SANOK RUBBER is expected to generate 1.49 times less return on investment than ATT. In addition to that, SANOK RUBBER is 1.92 times more volatile than ATT Inc. It trades about 0.05 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.14 per unit of volatility. If you would invest 1,188 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 1,036 from holding ATT Inc or generate 87.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. ATT Inc
Performance |
| Timeline |
| SANOK RUBBER ZY |
| ATT Inc |
SANOK RUBBER and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and ATT
The main advantage of trading using opposite SANOK RUBBER and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| SANOK RUBBER vs. Bridgestone | SANOK RUBBER vs. Superior Plus Corp | SANOK RUBBER vs. SIVERS SEMICONDUCTORS AB | SANOK RUBBER vs. Norsk Hydro ASA |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |