Correlation Between ATT and Celtic Plc
Can any of the company-specific risk be diversified away by investing in both ATT and Celtic Plc 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 Celtic Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Celtic plc, you can compare the effects of market volatilities on ATT and Celtic Plc 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 Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Celtic Plc.
Diversification Opportunities for ATT and Celtic Plc
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Celtic is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc 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 Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of ATT i.e., ATT and Celtic Plc go up and down completely randomly.
Pair Corralation between ATT and Celtic Plc
Taking into account the 90-day investment horizon ATT is expected to generate 1.27 times less return on investment than Celtic Plc. But when comparing it to its historical volatility, ATT Inc is 3.34 times less risky than Celtic Plc. It trades about 0.26 of its potential returns per unit of risk. Celtic plc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Celtic plc on August 26, 2024 and sell it today you would earn a total of 13.00 from holding Celtic plc or generate 6.6% 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. Celtic plc
Performance |
| Timeline |
| ATT Inc |
| Celtic plc |
ATT and Celtic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Celtic Plc
The main advantage of trading using opposite ATT and Celtic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Celtic Plc 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 Celtic Plc will offset losses from the drop in Celtic Plc's long position.| ATT vs. Cogent Communications Group | ATT vs. Liberty Broadband Srs | ATT vs. Ribbon Communications | ATT vs. Liberty Broadband Srs |
| Celtic Plc vs. Guild Esports Plc | Celtic Plc vs. ZoomerMedia Limited | Celtic Plc vs. Network Media Group | Celtic Plc vs. OverActive Media Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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