Correlation Between ATT and AFLAC
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By analyzing existing cross correlation between ATT Inc and AFLAC INC 4, you can compare the effects of market volatilities on ATT and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and AFLAC.
Diversification Opportunities for ATT and AFLAC
Significant diversification
The 3 months correlation between ATT and AFLAC is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of ATT i.e., ATT and AFLAC go up and down completely randomly.
Pair Corralation between ATT and AFLAC
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.31 times more return on investment than AFLAC. However, ATT Inc is 3.2 times less risky than AFLAC. It trades about 0.19 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about -0.12 per unit of risk. If you would invest 2,211 in ATT Inc on August 28, 2024 and sell it today you would earn a total of 99.00 from holding ATT Inc or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
ATT Inc vs. AFLAC INC 4
Performance |
| Timeline |
| ATT Inc |
| AFLAC INC 4 |
ATT and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and AFLAC
The main advantage of trading using opposite ATT and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.The idea behind ATT Inc and AFLAC INC 4 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.| AFLAC vs. AEP TEX INC | AFLAC vs. US BANK NATIONAL | AFLAC vs. Eat Beyond Global | AFLAC vs. Charles Schwab 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 CEOs Directory module to screen CEOs from public companies around the world.
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