Correlation Between ATT and GLENLN
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By analyzing existing cross correlation between ATT Inc and GLENLN 1625 27 APR 26, you can compare the effects of market volatilities on ATT and GLENLN 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 GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and GLENLN.
Diversification Opportunities for ATT and GLENLN
Good diversification
The 3 months correlation between ATT and GLENLN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and GLENLN 1625 27 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 1625 27 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 GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 1625 27 has no effect on the direction of ATT i.e., ATT and GLENLN go up and down completely randomly.
Pair Corralation between ATT and GLENLN
Taking into account the 90-day investment horizon ATT Inc is expected to generate 2.22 times more return on investment than GLENLN. However, ATT is 2.22 times more volatile than GLENLN 1625 27 APR 26. It trades about 0.05 of its potential returns per unit of risk. GLENLN 1625 27 APR 26 is currently generating about 0.02 per unit of risk. If you would invest 1,703 in ATT Inc on September 2, 2024 and sell it today you would earn a total of 613.00 from holding ATT Inc or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.32% |
| Values | Daily Returns |
ATT Inc vs. GLENLN 1625 27 APR 26
Performance |
| Timeline |
| ATT Inc |
| GLENLN 1625 27 |
ATT and GLENLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and GLENLN
The main advantage of trading using opposite ATT and GLENLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, GLENLN 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 GLENLN will offset losses from the drop in GLENLN's long position.The idea behind ATT Inc and GLENLN 1625 27 APR 26 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.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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