Correlation Between Deutsche Telekom and ATT
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By analyzing existing cross correlation between Deutsche Telekom AG and ATT Inc, you can compare the effects of market volatilities on Deutsche Telekom 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 Deutsche Telekom with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Telekom and ATT.
Diversification Opportunities for Deutsche Telekom and ATT
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Deutsche and ATT is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Telekom AG and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Deutsche Telekom 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 Deutsche Telekom AG 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 Deutsche Telekom i.e., Deutsche Telekom and ATT go up and down completely randomly.
Pair Corralation between Deutsche Telekom and ATT
Assuming the 90 days trading horizon Deutsche Telekom is expected to generate 1.48 times less return on investment than ATT. In addition to that, Deutsche Telekom is 1.42 times more volatile than ATT Inc. It trades about 0.12 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.24 per unit of volatility. If you would invest 2,036 in ATT Inc on August 29, 2024 and sell it today you would earn a total of 159.00 from holding ATT Inc or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Telekom AG vs. ATT Inc
Performance |
| Timeline |
| Deutsche Telekom |
| ATT Inc |
Deutsche Telekom and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Telekom and ATT
The main advantage of trading using opposite Deutsche Telekom and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Telekom 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.| Deutsche Telekom vs. SBI Insurance Group | Deutsche Telekom vs. MSAD INSURANCE | Deutsche Telekom vs. INSURANCE AUST GRP | Deutsche Telekom vs. NAKED WINES PLC |
| ATT vs. Apollo Investment Corp | ATT vs. UET United Electronic | ATT vs. Chuangs China Investments | ATT vs. REINET INVESTMENTS SCA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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