Correlation Between ATT and Consolidated Communications
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By analyzing existing cross correlation between ATT Inc and Consolidated Communications Holdings, you can compare the effects of market volatilities on ATT and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Consolidated Communications.
Diversification Opportunities for ATT and Consolidated Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ATT and Consolidated is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of ATT i.e., ATT and Consolidated Communications go up and down completely randomly.
Pair Corralation between ATT and Consolidated Communications
Assuming the 90 days trading horizon ATT Inc is expected to generate 1.37 times more return on investment than Consolidated Communications. However, ATT is 1.37 times more volatile than Consolidated Communications Holdings. It trades about 0.24 of its potential returns per unit of risk. Consolidated Communications Holdings is currently generating about 0.17 per unit of risk. If you would invest 2,036 in ATT Inc on August 29, 2024 and sell it today you would earn a total of 159.00 from holding ATT Inc or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ATT Inc vs. Consolidated Communications Ho
Performance |
| Timeline |
| ATT Inc |
| Consolidated Communications |
ATT and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Consolidated Communications
The main advantage of trading using opposite ATT and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| ATT vs. Apollo Investment Corp | ATT vs. UET United Electronic | ATT vs. Chuangs China Investments | ATT vs. REINET INVESTMENTS SCA |
| Consolidated Communications vs. Verizon Communications | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. Deutsche Telekom AG |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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