Correlation Between ATT and DEERE
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By analyzing existing cross correlation between ATT Inc and DEERE CO, you can compare the effects of market volatilities on ATT and DEERE 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 DEERE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and DEERE.
Diversification Opportunities for ATT and DEERE
Very good diversification
The 3 months correlation between ATT and DEERE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and DEERE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEERE CO 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 DEERE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEERE CO has no effect on the direction of ATT i.e., ATT and DEERE go up and down completely randomly.
Pair Corralation between ATT and DEERE
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.93 times more return on investment than DEERE. However, ATT Inc is 1.07 times less risky than DEERE. It trades about 0.24 of its potential returns per unit of risk. DEERE CO is currently generating about -0.08 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 | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
ATT Inc vs. DEERE CO
Performance |
| Timeline |
| ATT Inc |
| DEERE CO |
ATT and DEERE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and DEERE
The main advantage of trading using opposite ATT and DEERE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, DEERE 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 DEERE will offset losses from the drop in DEERE's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| DEERE vs. Old Republic International | DEERE vs. Vita Coco | DEERE vs. Thai Beverage PCL | DEERE vs. Compania Cervecerias Unidas |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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