Correlation Between ATT and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both ATT and Concrete Pumping 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 Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Concrete Pumping Holdings, you can compare the effects of market volatilities on ATT and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Concrete Pumping.
Diversification Opportunities for ATT and Concrete Pumping
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Concrete is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of ATT i.e., ATT and Concrete Pumping go up and down completely randomly.
Pair Corralation between ATT and Concrete Pumping
If you would invest 2,211 in ATT Inc on August 29, 2024 and sell it today you would earn a total of 98.00 from holding ATT Inc or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ATT Inc vs. Concrete Pumping Holdings
Performance |
| Timeline |
| ATT Inc |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATT and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Concrete Pumping
The main advantage of trading using opposite ATT and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| ATT vs. Liberty Broadband Srs | ATT vs. Ribbon Communications | ATT vs. Liberty Broadband Srs | ATT vs. Shenandoah Telecommunications Co |
| Concrete Pumping vs. Peoples Educational Holdings | Concrete Pumping vs. Ihuman Inc | Concrete Pumping vs. East Africa Metals | Concrete Pumping vs. Lion One Metals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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