Correlation Between CDN IMPERIAL and ATT
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By analyzing existing cross correlation between CDN IMPERIAL BANK and ATT Inc, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and ATT.
Diversification Opportunities for CDN IMPERIAL and ATT
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CDN and ATT is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and ATT go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and ATT
Assuming the 90 days trading horizon CDN IMPERIAL is expected to generate 1.37 times less return on investment than ATT. But when comparing it to its historical volatility, CDN IMPERIAL BANK is 1.01 times less risky than ATT. It trades about 0.04 of its potential returns per unit of risk. ATT Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,099 in ATT Inc on October 10, 2024 and sell it today you would earn a total of 44.00 from holding ATT Inc or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. ATT Inc
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| ATT Inc |
CDN IMPERIAL and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and ATT
The main advantage of trading using opposite CDN IMPERIAL and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. NORTHEAST UTILITIES | CDN IMPERIAL vs. TITAN MACHINERY | CDN IMPERIAL vs. Tokyu Construction Co | CDN IMPERIAL vs. Hanison Construction Holdings |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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