Correlation Between ATT and 191216CE8
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By analyzing existing cross correlation between ATT Inc and COCA A 29, you can compare the effects of market volatilities on ATT and 191216CE8 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 191216CE8. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and 191216CE8.
Diversification Opportunities for ATT and 191216CE8
Excellent diversification
The 3 months correlation between ATT and 191216CE8 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and COCA A 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A 29 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 191216CE8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A 29 has no effect on the direction of ATT i.e., ATT and 191216CE8 go up and down completely randomly.
Pair Corralation between ATT and 191216CE8
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.16 times more return on investment than 191216CE8. However, ATT is 1.16 times more volatile than COCA A 29. It trades about 0.24 of its potential returns per unit of risk. COCA A 29 is currently generating about -0.16 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 Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ATT Inc vs. COCA A 29
Performance |
| Timeline |
| ATT Inc |
| COCA A 29 |
ATT and 191216CE8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and 191216CE8
The main advantage of trading using opposite ATT and 191216CE8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, 191216CE8 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 191216CE8 will offset losses from the drop in 191216CE8's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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