Correlation Between ATT and Oxus Acquisition
Can any of the company-specific risk be diversified away by investing in both ATT and Oxus Acquisition 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 Oxus Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Oxus Acquisition Corp, you can compare the effects of market volatilities on ATT and Oxus Acquisition 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 Oxus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Oxus Acquisition.
Diversification Opportunities for ATT and Oxus Acquisition
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATT and Oxus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Oxus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxus Acquisition Corp 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 Oxus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxus Acquisition Corp has no effect on the direction of ATT i.e., ATT and Oxus Acquisition go up and down completely randomly.
Pair Corralation between ATT and Oxus Acquisition
If you would invest 2,230 in ATT Inc on September 14, 2024 and sell it today you would earn a total of 118.00 from holding ATT Inc or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ATT Inc vs. Oxus Acquisition Corp
Performance |
| Timeline |
| ATT Inc |
| Oxus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATT and Oxus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Oxus Acquisition
The main advantage of trading using opposite ATT and Oxus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Oxus Acquisition 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 Oxus Acquisition will offset losses from the drop in Oxus Acquisition's long position.The idea behind ATT Inc and Oxus Acquisition Corp 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.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |