Correlation Between ATT and CENTERPOINT
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By analyzing existing cross correlation between ATT Inc and CENTERPOINT ENERGY INC, you can compare the effects of market volatilities on ATT and CENTERPOINT 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 CENTERPOINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and CENTERPOINT.
Diversification Opportunities for ATT and CENTERPOINT
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATT and CENTERPOINT is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and CENTERPOINT ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTERPOINT ENERGY 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 CENTERPOINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTERPOINT ENERGY INC has no effect on the direction of ATT i.e., ATT and CENTERPOINT go up and down completely randomly.
Pair Corralation between ATT and CENTERPOINT
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.57 times more return on investment than CENTERPOINT. However, ATT is 1.57 times more volatile than CENTERPOINT ENERGY INC. It trades about 0.19 of its potential returns per unit of risk. CENTERPOINT ENERGY INC is currently generating about 0.0 per unit of risk. If you would invest 1,653 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 663.00 from holding ATT Inc or generate 40.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.77% |
| Values | Daily Returns |
ATT Inc vs. CENTERPOINT ENERGY INC
Performance |
| Timeline |
| ATT Inc |
| CENTERPOINT ENERGY INC |
ATT and CENTERPOINT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and CENTERPOINT
The main advantage of trading using opposite ATT and CENTERPOINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, CENTERPOINT 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 CENTERPOINT will offset losses from the drop in CENTERPOINT's long position.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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