Correlation Between Chuangs China and ATT
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By analyzing existing cross correlation between Chuangs China Investments and ATT Inc, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and ATT.
Diversification Opportunities for Chuangs China and ATT
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chuangs and ATT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and ATT go up and down completely randomly.
Pair Corralation between Chuangs China and ATT
Assuming the 90 days horizon Chuangs China Investments is expected to under-perform the ATT. In addition to that, Chuangs China is 3.84 times more volatile than ATT Inc. It trades about -0.01 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.05 per unit of volatility. If you would invest 1,621 in ATT Inc on October 19, 2024 and sell it today you would earn a total of 546.00 from holding ATT Inc or generate 33.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. ATT Inc
Performance |
| Timeline |
| Chuangs China Investments |
| ATT Inc |
Chuangs China and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and ATT
The main advantage of trading using opposite Chuangs China and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. LPKF Laser Electronics | Chuangs China vs. Bio Techne Corp | Chuangs China vs. Agilent Technologies | Chuangs China vs. ARROW ELECTRONICS |
| ATT vs. SEI INVESTMENTS | ATT vs. THORNEY TECHS LTD | ATT vs. Chuangs China Investments | ATT vs. PKSHA TECHNOLOGY INC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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