Correlation Between ATT and APPLE
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By analyzing existing cross correlation between ATT Inc and APPLE INC, you can compare the effects of market volatilities on ATT and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and APPLE.
Diversification Opportunities for ATT and APPLE
Very good diversification
The 3 months correlation between ATT and APPLE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of ATT i.e., ATT and APPLE go up and down completely randomly.
Pair Corralation between ATT and APPLE
Taking into account the 90-day investment horizon ATT is expected to generate 1.01 times less return on investment than APPLE. But when comparing it to its historical volatility, ATT Inc is 2.69 times less risky than APPLE. It trades about 0.09 of its potential returns per unit of risk. APPLE INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,294 in APPLE INC on August 24, 2024 and sell it today you would earn a total of 84.00 from holding APPLE INC or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ATT Inc vs. APPLE INC
Performance |
| Timeline |
| ATT Inc |
| APPLE INC |
ATT and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and APPLE
The main advantage of trading using opposite ATT and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| ATT vs. Small Cap Core | ATT vs. FitLife Brands, Common | ATT vs. Mutual Of America | ATT vs. Gfl Environmental Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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