Correlation Between ATT and Gray Television
Can any of the company-specific risk be diversified away by investing in both ATT and Gray Television 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 Gray Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Gray Television, you can compare the effects of market volatilities on ATT and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Gray Television.
Diversification Opportunities for ATT and Gray Television
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATT and Gray is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of ATT i.e., ATT and Gray Television go up and down completely randomly.
Pair Corralation between ATT and Gray Television
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.19 times more return on investment than Gray Television. However, ATT Inc is 5.17 times less risky than Gray Television. It trades about 0.2 of its potential returns per unit of risk. Gray Television is currently generating about 0.03 per unit of risk. If you would invest 1,680 in ATT Inc on August 24, 2024 and sell it today you would earn a total of 618.00 from holding ATT Inc or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
ATT Inc vs. Gray Television
Performance |
| Timeline |
| ATT Inc |
| Gray Television |
ATT and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Gray Television
The main advantage of trading using opposite ATT and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| ATT vs. Small Cap Core | ATT vs. FitLife Brands, Common | ATT vs. Mutual Of America | ATT vs. Gfl Environmental Holdings |
| Gray Television vs. Western Asset Investment | Gray Television vs. Kinetik Holdings | Gray Television vs. Atmos Energy | Gray Television vs. Vistra Energy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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