Correlation Between ATT and COSTCO

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ATT and COSTCO at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ATT and COSTCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and COSTCO WHOLESALE PORATION, you can compare the effects of market volatilities on ATT and COSTCO 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 COSTCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and COSTCO.

Diversification Opportunities for ATT and COSTCO

-0.66
  Correlation Coefficient
 ATT

Excellent diversification

The 3 months correlation between ATT and COSTCO is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and COSTCO WHOLESALE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTCO WHOLESALE PORATION 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 COSTCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTCO WHOLESALE PORATION has no effect on the direction of ATT i.e., ATT and COSTCO go up and down completely randomly.

Pair Corralation between ATT and COSTCO

Taking into account the 90-day investment horizon ATT Inc is expected to generate 2.33 times more return on investment than COSTCO. However, ATT is 2.33 times more volatile than COSTCO WHOLESALE PORATION. It trades about 0.05 of its potential returns per unit of risk. COSTCO WHOLESALE PORATION is currently generating about 0.02 per unit of risk. If you would invest  1,692  in ATT Inc on August 27, 2024 and sell it today you would earn a total of  626.00  from holding ATT Inc or generate 37.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.6%
ValuesDaily Returns

ATT Inc  vs.  COSTCO WHOLESALE PORATION

 Performance 
       Timeline  
ATT Inc 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.
COSTCO WHOLESALE PORATION 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Very Weak
Compared to the overall equity markets, risk-adjusted returns on investments in COSTCO WHOLESALE PORATION are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, COSTCO is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

ATT and COSTCO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and COSTCO

The main advantage of trading using opposite ATT and COSTCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, COSTCO 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 COSTCO will offset losses from the drop in COSTCO's long position.
ATT vs. T Mobile
ATT vs. Comcast Corp
ATT vs. Lumen Technologies
ATT vs. Verizon Communications
The idea behind ATT Inc and COSTCO WHOLESALE PORATION 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.
COSTCO vs. The Coca Cola
COSTCO vs. JPMorgan Chase Co
COSTCO vs. Dupont De Nemours
COSTCO vs. Alcoa 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Equity Valuation
Check real value of public entities based on technical and fundamental data
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY