Correlation Between Pure Storage and ATT
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By analyzing existing cross correlation between Pure Storage and ATT Inc, you can compare the effects of market volatilities on Pure Storage 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 Pure Storage with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and ATT.
Diversification Opportunities for Pure Storage and ATT
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pure and ATT is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Pure Storage 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 Pure Storage 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 Pure Storage i.e., Pure Storage and ATT go up and down completely randomly.
Pair Corralation between Pure Storage and ATT
Assuming the 90 days horizon Pure Storage is expected to generate 1.84 times more return on investment than ATT. However, Pure Storage is 1.84 times more volatile than ATT Inc. It trades about 0.25 of its potential returns per unit of risk. ATT Inc is currently generating about 0.0 per unit of risk. If you would invest 6,159 in Pure Storage on October 26, 2024 and sell it today you would earn a total of 726.00 from holding Pure Storage or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pure Storage vs. ATT Inc
Performance |
| Timeline |
| Pure Storage |
| ATT Inc |
Pure Storage and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Storage and ATT
The main advantage of trading using opposite Pure Storage and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage 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.| Pure Storage vs. Tower One Wireless | Pure Storage vs. American Eagle Outfitters | Pure Storage vs. Harmony Gold Mining | Pure Storage vs. Chesapeake Utilities |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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