Correlation Between Grupo Mxico and ATT
Can any of the company-specific risk be diversified away by investing in both Grupo Mxico 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 Grupo Mxico and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Mxico SAB and ATT Inc, you can compare the effects of market volatilities on Grupo Mxico 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 Grupo Mxico with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mxico and ATT.
Diversification Opportunities for Grupo Mxico and ATT
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and ATT is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mxico SAB and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Grupo Mxico 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 Grupo Mxico SAB 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 Grupo Mxico i.e., Grupo Mxico and ATT go up and down completely randomly.
Pair Corralation between Grupo Mxico and ATT
Assuming the 90 days horizon Grupo Mxico SAB is expected to under-perform the ATT. In addition to that, Grupo Mxico is 1.96 times more volatile than ATT Inc. It trades about -0.17 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.14 per unit of volatility. If you would invest 2,254 in ATT Inc on September 1, 2024 and sell it today you would earn a total of 62.00 from holding ATT Inc or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Mxico SAB vs. ATT Inc
Performance |
| Timeline |
| Grupo Mxico SAB |
| ATT Inc |
Grupo Mxico and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mxico and ATT
The main advantage of trading using opposite Grupo Mxico and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mxico 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.| Grupo Mxico vs. ATT Inc | Grupo Mxico vs. Merck Company | Grupo Mxico vs. Walt Disney | Grupo Mxico vs. Caterpillar |
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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