Correlation Between ATT and SOCGEN
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By analyzing existing cross correlation between ATT Inc and SOCGEN 3 22 JAN 30, you can compare the effects of market volatilities on ATT and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and SOCGEN.
Diversification Opportunities for ATT and SOCGEN
Very weak diversification
The 3 months correlation between ATT and SOCGEN is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and SOCGEN 3 22 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 3 22 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 3 22 has no effect on the direction of ATT i.e., ATT and SOCGEN go up and down completely randomly.
Pair Corralation between ATT and SOCGEN
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.24 times more return on investment than SOCGEN. However, ATT is 1.24 times more volatile than SOCGEN 3 22 JAN 30. It trades about 0.09 of its potential returns per unit of risk. SOCGEN 3 22 JAN 30 is currently generating about 0.01 per unit of risk. If you would invest 1,459 in ATT Inc on August 31, 2024 and sell it today you would earn a total of 857.00 from holding ATT Inc or generate 58.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.02% |
| Values | Daily Returns |
ATT Inc vs. SOCGEN 3 22 JAN 30
Performance |
| Timeline |
| ATT Inc |
| SOCGEN 3 22 |
ATT and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and SOCGEN
The main advantage of trading using opposite ATT and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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