Correlation Between ATT and Capstone Technologies
Can any of the company-specific risk be diversified away by investing in both ATT and Capstone Technologies 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 Capstone Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Capstone Technologies Group, you can compare the effects of market volatilities on ATT and Capstone Technologies 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 Capstone Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Capstone Technologies.
Diversification Opportunities for ATT and Capstone Technologies
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Capstone is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Capstone Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Technologies 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 Capstone Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Technologies has no effect on the direction of ATT i.e., ATT and Capstone Technologies go up and down completely randomly.
Pair Corralation between ATT and Capstone Technologies
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.24 times more return on investment than Capstone Technologies. However, ATT Inc is 4.19 times less risky than Capstone Technologies. It trades about 0.13 of its potential returns per unit of risk. Capstone Technologies Group is currently generating about -0.1 per unit of risk. If you would invest 1,355 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 996.00 from holding ATT Inc or generate 73.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Capstone Technologies Group
Performance |
| Timeline |
| ATT Inc |
| Capstone Technologies |
ATT and Capstone Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Capstone Technologies
The main advantage of trading using opposite ATT and Capstone Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Capstone Technologies 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 Capstone Technologies will offset losses from the drop in Capstone Technologies' long position.| ATT vs. Victory Integrity Smallmid Cap | ATT vs. Hilton Worldwide Holdings | ATT vs. NVIDIA | ATT vs. JPMorgan Chase Co |
| Capstone Technologies vs. Arhaus Inc | Capstone Technologies vs. Floor Decor Holdings | Capstone Technologies vs. Live Ventures | Capstone Technologies vs. ATT Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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