Correlation Between Altair International and ATT
Can any of the company-specific risk be diversified away by investing in both Altair International 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 Altair International and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair International Corp and ATT Inc, you can compare the effects of market volatilities on Altair International 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 Altair International with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair International and ATT.
Diversification Opportunities for Altair International and ATT
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altair and ATT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Altair International Corp and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Altair International 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 Altair International Corp 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 Altair International i.e., Altair International and ATT go up and down completely randomly.
Pair Corralation between Altair International and ATT
Given the investment horizon of 90 days Altair International Corp is expected to generate 12.45 times more return on investment than ATT. However, Altair International is 12.45 times more volatile than ATT Inc. It trades about 0.06 of its potential returns per unit of risk. ATT Inc is currently generating about 0.17 per unit of risk. If you would invest 6.90 in Altair International Corp on September 3, 2024 and sell it today you would lose (2.40) from holding Altair International Corp or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair International Corp vs. ATT Inc
Performance |
| Timeline |
| Altair International Corp |
| ATT Inc |
Altair International and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair International and ATT
The main advantage of trading using opposite Altair International and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair International 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.| Altair International vs. Qubec Nickel Corp | Altair International vs. IGO Limited | Altair International vs. Avarone Metals | Altair International vs. Adriatic Metals PLC |
| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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