Correlation Between ATT and HOSPITALITY
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By analyzing existing cross correlation between ATT Inc and HOSPITALITY PPTYS TR, you can compare the effects of market volatilities on ATT and HOSPITALITY 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 HOSPITALITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and HOSPITALITY.
Diversification Opportunities for ATT and HOSPITALITY
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATT and HOSPITALITY is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and HOSPITALITY PPTYS TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOSPITALITY PPTYS 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 HOSPITALITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOSPITALITY PPTYS has no effect on the direction of ATT i.e., ATT and HOSPITALITY go up and down completely randomly.
Pair Corralation between ATT and HOSPITALITY
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.66 times more return on investment than HOSPITALITY. However, ATT is 1.66 times more volatile than HOSPITALITY PPTYS TR. It trades about 0.12 of its potential returns per unit of risk. HOSPITALITY PPTYS TR is currently generating about 0.05 per unit of risk. If you would invest 1,594 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 676.00 from holding ATT Inc or generate 42.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.76% |
| Values | Daily Returns |
ATT Inc vs. HOSPITALITY PPTYS TR
Performance |
| Timeline |
| ATT Inc |
| HOSPITALITY PPTYS |
ATT and HOSPITALITY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and HOSPITALITY
The main advantage of trading using opposite ATT and HOSPITALITY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, HOSPITALITY 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 HOSPITALITY will offset losses from the drop in HOSPITALITY's long position.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
| HOSPITALITY vs. AEP TEX INC | HOSPITALITY vs. US BANK NATIONAL | HOSPITALITY vs. Jackson Financial | HOSPITALITY vs. MetLife |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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