Correlation Between ATT and Mango Capital
Can any of the company-specific risk be diversified away by investing in both ATT and Mango Capital 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 Mango Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Mango Capital, you can compare the effects of market volatilities on ATT and Mango Capital 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 Mango Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Mango Capital.
Diversification Opportunities for ATT and Mango Capital
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Mango is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Mango Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Capital 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 Mango Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Capital has no effect on the direction of ATT i.e., ATT and Mango Capital go up and down completely randomly.
Pair Corralation between ATT and Mango Capital
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.78 times more return on investment than Mango Capital. However, ATT is 1.78 times more volatile than Mango Capital. It trades about 0.24 of its potential returns per unit of risk. Mango Capital is currently generating about 0.21 per unit of risk. If you would invest 2,202 in ATT Inc on August 31, 2024 and sell it today you would earn a total of 125.00 from holding ATT Inc or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Mango Capital
Performance |
| Timeline |
| ATT Inc |
| Mango Capital |
ATT and Mango Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Mango Capital
The main advantage of trading using opposite ATT and Mango Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Mango Capital 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 Mango Capital will offset losses from the drop in Mango Capital's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| Mango Capital vs. Boston Properties | Mango Capital vs. Kilroy Realty Corp | Mango Capital vs. SL Green Realty | Mango Capital vs. Vornado Realty Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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