Correlation Between Grupo Minsa and ATT
Can any of the company-specific risk be diversified away by investing in both Grupo Minsa 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 Minsa and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Minsa SAB and ATT Inc, you can compare the effects of market volatilities on Grupo Minsa 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 Minsa with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Minsa and ATT.
Diversification Opportunities for Grupo Minsa and ATT
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and ATT is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Minsa 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 Minsa 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 Minsa 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 Minsa i.e., Grupo Minsa and ATT go up and down completely randomly.
Pair Corralation between Grupo Minsa and ATT
Assuming the 90 days trading horizon Grupo Minsa is expected to generate 3.96 times less return on investment than ATT. But when comparing it to its historical volatility, Grupo Minsa SAB is 4.62 times less risky than ATT. It trades about 0.26 of its potential returns per unit of risk. ATT Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 44,599 in ATT Inc on August 24, 2024 and sell it today you would earn a total of 2,400 from holding ATT Inc or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Minsa SAB vs. ATT Inc
Performance |
| Timeline |
| Grupo Minsa SAB |
| ATT Inc |
Grupo Minsa and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Minsa and ATT
The main advantage of trading using opposite Grupo Minsa and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Minsa 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 Minsa vs. Prudential Financial | Grupo Minsa vs. McEwen Mining | Grupo Minsa vs. Grupo Sports World | Grupo Minsa vs. GMxico Transportes SAB |
| ATT vs. Micron Technology | ATT vs. KB Home | ATT vs. Deutsche Bank Aktiengesellschaft | ATT vs. Grupo Hotelero Santa |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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