Correlation Between ATT and Green Battery
Can any of the company-specific risk be diversified away by investing in both ATT and Green Battery 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 Green Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Green Battery Minerals, you can compare the effects of market volatilities on ATT and Green Battery 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 Green Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Green Battery.
Diversification Opportunities for ATT and Green Battery
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Green is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Green Battery Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Battery Minerals 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 Green Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Battery Minerals has no effect on the direction of ATT i.e., ATT and Green Battery go up and down completely randomly.
Pair Corralation between ATT and Green Battery
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.14 times more return on investment than Green Battery. However, ATT Inc is 7.3 times less risky than Green Battery. It trades about 0.19 of its potential returns per unit of risk. Green Battery Minerals is currently generating about -0.11 per unit of risk. If you would invest 2,031 in ATT Inc on September 4, 2024 and sell it today you would earn a total of 343.00 from holding ATT Inc or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.75% |
| Values | Daily Returns |
ATT Inc vs. Green Battery Minerals
Performance |
| Timeline |
| ATT Inc |
| Green Battery Minerals |
ATT and Green Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Green Battery
The main advantage of trading using opposite ATT and Green Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Green Battery 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 Green Battery will offset losses from the drop in Green Battery's long position.The idea behind ATT Inc and Green Battery Minerals 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.| Green Battery vs. Class 1 Nickel | Green Battery vs. Pampa Metals | Green Battery vs. EcoGraf Limited | Green Battery vs. M3 Metals 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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