Correlation Between ATT and Anterix
Can any of the company-specific risk be diversified away by investing in both ATT and Anterix 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 Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Anterix, you can compare the effects of market volatilities on ATT and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Anterix.
Diversification Opportunities for ATT and Anterix
Very good diversification
The 3 months correlation between ATT and Anterix is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of ATT i.e., ATT and Anterix go up and down completely randomly.
Pair Corralation between ATT and Anterix
Taking into account the 90-day investment horizon ATT is expected to generate 1.39 times less return on investment than Anterix. But when comparing it to its historical volatility, ATT Inc is 2.25 times less risky than Anterix. It trades about 0.21 of its potential returns per unit of risk. Anterix is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,271 in Anterix on August 30, 2024 and sell it today you would earn a total of 210.00 from holding Anterix or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Anterix
Performance |
| Timeline |
| ATT Inc |
| Anterix |
ATT and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Anterix
The main advantage of trading using opposite ATT and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.The idea behind ATT Inc and Anterix 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.| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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