Correlation Between ATT and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both ATT and Malacca Straits 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 Malacca Straits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Malacca Straits Acquisition, you can compare the effects of market volatilities on ATT and Malacca Straits 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 Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Malacca Straits.
Diversification Opportunities for ATT and Malacca Straits
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATT and Malacca is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Malacca Straits Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acqu 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 Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acqu has no effect on the direction of ATT i.e., ATT and Malacca Straits go up and down completely randomly.
Pair Corralation between ATT and Malacca Straits
If you would invest 1,342 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 928.00 from holding ATT Inc or generate 69.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
ATT Inc vs. Malacca Straits Acquisition
Performance |
| Timeline |
| ATT Inc |
| Malacca Straits Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATT and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Malacca Straits
The main advantage of trading using opposite ATT and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
| Malacca Straits vs. Hudson Acquisition I | Malacca Straits vs. Alpha One | Malacca Straits vs. Manaris Corp | Malacca Straits vs. Marblegate Acquisition 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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