Correlation Between ATT and NEWMONT
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By analyzing existing cross correlation between ATT Inc and NEWMONT MNG P, you can compare the effects of market volatilities on ATT and NEWMONT 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 NEWMONT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and NEWMONT.
Diversification Opportunities for ATT and NEWMONT
Pay attention - limited upside
The 3 months correlation between ATT and NEWMONT is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and NEWMONT MNG P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWMONT MNG P 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 NEWMONT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWMONT MNG P has no effect on the direction of ATT i.e., ATT and NEWMONT go up and down completely randomly.
Pair Corralation between ATT and NEWMONT
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.18 times more return on investment than NEWMONT. However, ATT is 1.18 times more volatile than NEWMONT MNG P. It trades about 0.12 of its potential returns per unit of risk. NEWMONT MNG P is currently generating about -0.16 per unit of risk. If you would invest 2,132 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 216.00 from holding ATT Inc or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.63% |
| Values | Daily Returns |
ATT Inc vs. NEWMONT MNG P
Performance |
| Timeline |
| ATT Inc |
| NEWMONT MNG P |
ATT and NEWMONT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and NEWMONT
The main advantage of trading using opposite ATT and NEWMONT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, NEWMONT 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 NEWMONT will offset losses from the drop in NEWMONT's long position.The idea behind ATT Inc and NEWMONT MNG P 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.| NEWMONT vs. AEP TEX INC | NEWMONT vs. US BANK NATIONAL | NEWMONT vs. Palantir Technologies Class | NEWMONT vs. Intuitive Machines |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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