Correlation Between ATT and KRAFT
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By analyzing existing cross correlation between ATT Inc and KRAFT HEINZ FOODS, you can compare the effects of market volatilities on ATT and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and KRAFT.
Diversification Opportunities for ATT and KRAFT
Very good diversification
The 3 months correlation between ATT and KRAFT is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and KRAFT HEINZ FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT HEINZ FOODS 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT HEINZ FOODS has no effect on the direction of ATT i.e., ATT and KRAFT go up and down completely randomly.
Pair Corralation between ATT and KRAFT
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.79 times more return on investment than KRAFT. However, ATT is 1.79 times more volatile than KRAFT HEINZ FOODS. It trades about 0.24 of its potential returns per unit of risk. KRAFT HEINZ FOODS is currently generating about -0.19 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. KRAFT HEINZ FOODS
Performance |
| Timeline |
| ATT Inc |
| KRAFT HEINZ FOODS |
ATT and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and KRAFT
The main advantage of trading using opposite ATT and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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