Correlation Between ATT and AIB Acquisition
Can any of the company-specific risk be diversified away by investing in both ATT and AIB Acquisition 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 AIB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and AIB Acquisition Corp, you can compare the effects of market volatilities on ATT and AIB Acquisition 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 AIB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and AIB Acquisition.
Diversification Opportunities for ATT and AIB Acquisition
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATT and AIB is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and AIB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Acquisition Corp 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 AIB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Acquisition Corp has no effect on the direction of ATT i.e., ATT and AIB Acquisition go up and down completely randomly.
Pair Corralation between ATT and AIB Acquisition
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.6 times more return on investment than AIB Acquisition. However, ATT Inc is 1.66 times less risky than AIB Acquisition. It trades about 0.04 of its potential returns per unit of risk. AIB Acquisition Corp is currently generating about 0.03 per unit of risk. If you would invest 1,738 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 532.00 from holding ATT Inc or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.42% |
| Values | Daily Returns |
ATT Inc vs. AIB Acquisition Corp
Performance |
| Timeline |
| ATT Inc |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATT and AIB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and AIB Acquisition
The main advantage of trading using opposite ATT and AIB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, AIB Acquisition 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 AIB Acquisition will offset losses from the drop in AIB Acquisition's long position.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
| AIB Acquisition vs. AlphaTime Acquisition Corp | AIB Acquisition vs. Manaris Corp | AIB Acquisition vs. Alpha One | AIB Acquisition vs. Portage Fintech Acquisition |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |