Correlation Between STMICROELECTRONICS and ATT
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By analyzing existing cross correlation between STMICROELECTRONICS and ATT Inc, you can compare the effects of market volatilities on STMICROELECTRONICS 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 STMICROELECTRONICS with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMICROELECTRONICS and ATT.
Diversification Opportunities for STMICROELECTRONICS and ATT
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STMICROELECTRONICS and ATT is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding STMICROELECTRONICS and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS i.e., STMICROELECTRONICS and ATT go up and down completely randomly.
Pair Corralation between STMICROELECTRONICS and ATT
Assuming the 90 days trading horizon STMICROELECTRONICS is expected to generate 4.23 times less return on investment than ATT. In addition to that, STMICROELECTRONICS is 1.63 times more volatile than ATT Inc. It trades about 0.04 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 2,099 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 129.00 from holding ATT Inc or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMICROELECTRONICS vs. ATT Inc
Performance |
| Timeline |
| STMICROELECTRONICS |
| ATT Inc |
STMICROELECTRONICS and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMICROELECTRONICS and ATT
The main advantage of trading using opposite STMICROELECTRONICS and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMICROELECTRONICS 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.| STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc |
| ATT vs. REINET INVESTMENTS SCA | ATT vs. Evolution Mining Limited | ATT vs. KENNAMETAL INC | ATT vs. DIVERSIFIED ROYALTY |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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