Correlation Between ATT and 060505EU4
Specify exactly 2 symbols:
By analyzing existing cross correlation between ATT Inc and BANK AMER P, you can compare the effects of market volatilities on ATT and 060505EU4 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 060505EU4. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and 060505EU4.
Diversification Opportunities for ATT and 060505EU4
Very good diversification
The 3 months correlation between ATT and 060505EU4 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 060505EU4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of ATT i.e., ATT and 060505EU4 go up and down completely randomly.
Pair Corralation between ATT and 060505EU4
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.54 times more return on investment than 060505EU4. However, ATT is 1.54 times more volatile than BANK AMER P. It trades about 0.19 of its potential returns per unit of risk. BANK AMER P is currently generating about -0.05 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. BANK AMER P
Performance |
| Timeline |
| ATT Inc |
| BANK AMER P |
ATT and 060505EU4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and 060505EU4
The main advantage of trading using opposite ATT and 060505EU4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, 060505EU4 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 060505EU4 will offset losses from the drop in 060505EU4's long position.The idea behind ATT Inc and BANK AMER P 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.| 060505EU4 vs. AEP TEX INC | 060505EU4 vs. US BANK NATIONAL | 060505EU4 vs. Eat Beyond Global | 060505EU4 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |