Correlation Between ATT and Southern BancShares
Can any of the company-specific risk be diversified away by investing in both ATT and Southern BancShares 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 Southern BancShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Southern BancShares PFD, you can compare the effects of market volatilities on ATT and Southern BancShares 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 Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Southern BancShares.
Diversification Opportunities for ATT and Southern BancShares
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATT and Southern is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Southern BancShares PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares PFD 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 Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares PFD has no effect on the direction of ATT i.e., ATT and Southern BancShares go up and down completely randomly.
Pair Corralation between ATT and Southern BancShares
If you would invest 2,254 in ATT Inc on November 3, 2024 and sell it today you would earn a total of 119.00 from holding ATT Inc or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATT Inc vs. Southern BancShares PFD
Performance |
| Timeline |
| ATT Inc |
| Southern BancShares PFD |
ATT and Southern BancShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Southern BancShares
The main advantage of trading using opposite ATT and Southern BancShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Southern BancShares 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 Southern BancShares will offset losses from the drop in Southern BancShares' long position.The idea behind ATT Inc and Southern BancShares PFD 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.| Southern BancShares vs. Grocery Outlet Holding | Southern BancShares vs. PennantPark Floating Rate | Southern BancShares vs. FS KKR Capital | Southern BancShares vs. Gladstone 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |