Correlation Between Platinum Investment and ATT
Can any of the company-specific risk be diversified away by investing in both Platinum Investment 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 Platinum Investment and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and ATT Inc, you can compare the effects of market volatilities on Platinum Investment 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 Platinum Investment with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and ATT.
Diversification Opportunities for Platinum Investment and ATT
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and ATT is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Platinum Investment 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 Platinum Investment Management 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 Platinum Investment i.e., Platinum Investment and ATT go up and down completely randomly.
Pair Corralation between Platinum Investment and ATT
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the ATT. In addition to that, Platinum Investment is 2.02 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 0.09 per unit of volatility. If you would invest 1,288 in ATT Inc on October 19, 2024 and sell it today you would earn a total of 841.00 from holding ATT Inc or generate 65.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. ATT Inc
Performance |
| Timeline |
| Platinum Investment |
| ATT Inc |
Platinum Investment and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and ATT
The main advantage of trading using opposite Platinum Investment and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment 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.| Platinum Investment vs. United Airlines Holdings | Platinum Investment vs. SOUTHWEST AIRLINES | Platinum Investment vs. American Eagle Outfitters | Platinum Investment vs. PULSION Medical Systems |
| ATT vs. Platinum Investment Management | ATT vs. Corporate Travel Management | ATT vs. AGF Management Limited | ATT vs. JAPAN TOBACCO UNSPADR12 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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