Correlation Between ATT and Graphic
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By analyzing existing cross correlation between ATT Inc and Graphic Packaging International, you can compare the effects of market volatilities on ATT and Graphic 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 Graphic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Graphic.
Diversification Opportunities for ATT and Graphic
Excellent diversification
The 3 months correlation between ATT and Graphic is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Graphic Packaging Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphic Packaging 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 Graphic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphic Packaging has no effect on the direction of ATT i.e., ATT and Graphic go up and down completely randomly.
Pair Corralation between ATT and Graphic
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.74 times more return on investment than Graphic. However, ATT is 1.74 times more volatile than Graphic Packaging International. It trades about 0.16 of its potential returns per unit of risk. Graphic Packaging International is currently generating about -0.05 per unit of risk. If you would invest 1,643 in ATT Inc on September 1, 2024 and sell it today you would earn a total of 673.00 from holding ATT Inc or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.13% |
| Values | Daily Returns |
ATT Inc vs. Graphic Packaging Internationa
Performance |
| Timeline |
| ATT Inc |
| Graphic Packaging |
ATT and Graphic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Graphic
The main advantage of trading using opposite ATT and Graphic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Graphic 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 Graphic will offset losses from the drop in Graphic's long position.The idea behind ATT Inc and Graphic Packaging International 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.| Graphic vs. Microbot Medical | Graphic vs. Nyxoah | Graphic vs. Rackspace Technology | Graphic vs. Postal Realty Trust |
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.
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