Correlation Between Fair Isaac and ATT
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By analyzing existing cross correlation between Fair Isaac Corp and ATT Inc, you can compare the effects of market volatilities on Fair Isaac 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 Fair Isaac with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and ATT.
Diversification Opportunities for Fair Isaac and ATT
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fair and ATT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac Corp and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Fair Isaac 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 Fair Isaac 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 Fair Isaac i.e., Fair Isaac and ATT go up and down completely randomly.
Pair Corralation between Fair Isaac and ATT
Assuming the 90 days trading horizon Fair Isaac Corp is expected to generate 1.8 times more return on investment than ATT. However, Fair Isaac is 1.8 times more volatile than ATT Inc. It trades about 0.15 of its potential returns per unit of risk. ATT Inc is currently generating about 0.16 per unit of risk. If you would invest 103,000 in Fair Isaac Corp on September 14, 2024 and sell it today you would earn a total of 108,600 from holding Fair Isaac Corp or generate 105.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Isaac Corp vs. ATT Inc
Performance |
| Timeline |
| Fair Isaac Corp |
| ATT Inc |
Fair Isaac and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Isaac and ATT
The main advantage of trading using opposite Fair Isaac and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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.The idea behind Fair Isaac Corp and ATT Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ATT vs. LPKF Laser Electronics | ATT vs. METHODE ELECTRONICS | ATT vs. WillScot Mobile Mini | ATT vs. T MOBILE US |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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