Correlation Between ATT and US Global
Can any of the company-specific risk be diversified away by investing in both ATT and US Global 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 US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and US Global Sea, you can compare the effects of market volatilities on ATT and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and US Global.
Diversification Opportunities for ATT and US Global
Very good diversification
The 3 months correlation between ATT and SEA is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and US Global Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Sea 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Sea has no effect on the direction of ATT i.e., ATT and US Global go up and down completely randomly.
Pair Corralation between ATT and US Global
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.14 times more return on investment than US Global. However, ATT is 1.14 times more volatile than US Global Sea. It trades about 0.24 of its potential returns per unit of risk. US Global Sea 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. US Global Sea
Performance |
| Timeline |
| ATT Inc |
| US Global Sea |
ATT and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and US Global
The main advantage of trading using opposite ATT and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |