Correlation Between ATT and Amplify Online
Can any of the company-specific risk be diversified away by investing in both ATT and Amplify Online 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 Amplify Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Amplify Online Retail, you can compare the effects of market volatilities on ATT and Amplify Online 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 Amplify Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Amplify Online.
Diversification Opportunities for ATT and Amplify Online
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ATT and Amplify is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Amplify Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Online Retail 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 Amplify Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Online Retail has no effect on the direction of ATT i.e., ATT and Amplify Online go up and down completely randomly.
Pair Corralation between ATT and Amplify Online
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.93 times more return on investment than Amplify Online. However, ATT Inc is 1.07 times less risky than Amplify Online. It trades about 0.18 of its potential returns per unit of risk. Amplify Online Retail is currently generating about 0.13 per unit of risk. If you would invest 1,752 in ATT Inc on August 31, 2024 and sell it today you would earn a total of 564.00 from holding ATT Inc or generate 32.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Amplify Online Retail
Performance |
| Timeline |
| ATT Inc |
| Amplify Online Retail |
ATT and Amplify Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Amplify Online
The main advantage of trading using opposite ATT and Amplify Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Amplify Online 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 Amplify Online will offset losses from the drop in Amplify Online's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| Amplify Online vs. ProShares Online Retail | Amplify Online vs. WisdomTree Cloud Computing | Amplify Online vs. Amplify ETF Trust | Amplify Online vs. Global X Cloud |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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