Correlation Between ATT and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both ATT and CEWE Stiftung 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 ATT and CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and CEWE Stiftung Co, you can compare the effects of market volatilities on ATT and CEWE Stiftung 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 ATT with a short position of CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and CEWE Stiftung.
Diversification Opportunities for ATT and CEWE Stiftung
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATT and CEWE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung and ATT 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 ATT Inc are associated (or correlated) with CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of ATT i.e., ATT and CEWE Stiftung go up and down completely randomly.
Pair Corralation between ATT and CEWE Stiftung
Assuming the 90 days trading horizon ATT Inc is expected to generate 1.55 times more return on investment than CEWE Stiftung. However, ATT is 1.55 times more volatile than CEWE Stiftung Co. It trades about 0.12 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.06 per unit of risk. If you would invest 2,187 in ATT Inc on November 14, 2025 and sell it today you would earn a total of 262.00 from holding ATT Inc or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. CEWE Stiftung Co
Performance |
| Timeline |
| ATT Inc |
| CEWE Stiftung |
ATT and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and CEWE Stiftung
The main advantage of trading using opposite ATT and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.The idea behind ATT Inc and CEWE Stiftung Co 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.| CEWE Stiftung vs. Aegean Airlines SA | CEWE Stiftung vs. Lifeway Foods | CEWE Stiftung vs. EBRO FOODS | CEWE Stiftung vs. COFCO Joycome Foods |
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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