Correlation Between ATT and Altice
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By analyzing existing cross correlation between ATT Inc and Altice France 55, you can compare the effects of market volatilities on ATT and Altice 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 Altice. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Altice.
Diversification Opportunities for ATT and Altice
Poor diversification
The 3 months correlation between ATT and Altice is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Altice France 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altice France 55 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 Altice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altice France 55 has no effect on the direction of ATT i.e., ATT and Altice go up and down completely randomly.
Pair Corralation between ATT and Altice
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.57 times more return on investment than Altice. However, ATT Inc is 1.76 times less risky than Altice. It trades about 0.24 of its potential returns per unit of risk. Altice France 55 is currently generating about 0.06 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 Together |
| Strength | Significant |
| Accuracy | 77.27% |
| Values | Daily Returns |
ATT Inc vs. Altice France 55
Performance |
| Timeline |
| ATT Inc |
| Altice France 55 |
ATT and Altice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Altice
The main advantage of trading using opposite ATT and Altice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Altice 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 Altice will offset losses from the drop in Altice's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| Altice vs. AEP TEX INC | Altice vs. US BANK NATIONAL | Altice vs. FactSet Research Systems | Altice vs. Golden Agri Resources |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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