Correlation Between ATT and Bolloré SE
Can any of the company-specific risk be diversified away by investing in both ATT and Bolloré SE 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 Bolloré SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Bollor SE, you can compare the effects of market volatilities on ATT and Bolloré SE 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 Bolloré SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Bolloré SE.
Diversification Opportunities for ATT and Bolloré SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATT and Bolloré is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolloré SE 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 Bolloré SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolloré SE has no effect on the direction of ATT i.e., ATT and Bolloré SE go up and down completely randomly.
Pair Corralation between ATT and Bolloré SE
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.72 times more return on investment than Bolloré SE. However, ATT Inc is 1.38 times less risky than Bolloré SE. It trades about 0.24 of its potential returns per unit of risk. Bollor SE is currently generating about -0.11 per unit of risk. If you would invest 2,202 in ATT Inc on August 31, 2024 and sell it today you would earn a total of 125.00 from holding ATT Inc or generate 5.68% 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. Bollor SE
Performance |
| Timeline |
| ATT Inc |
| Bolloré SE |
ATT and Bolloré SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Bolloré SE
The main advantage of trading using opposite ATT and Bolloré SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Bolloré SE 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 Bolloré SE will offset losses from the drop in Bolloré SE's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| Bolloré SE vs. ZoomerMedia Limited | Bolloré SE vs. Network Media Group | Bolloré SE vs. New Wave Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |