Correlation Between ATT and SOUTHERN
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By analyzing existing cross correlation between ATT Inc and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on ATT and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and SOUTHERN.
Diversification Opportunities for ATT and SOUTHERN
Excellent diversification
The 3 months correlation between ATT and SOUTHERN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of ATT i.e., ATT and SOUTHERN go up and down completely randomly.
Pair Corralation between ATT and SOUTHERN
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.87 times more return on investment than SOUTHERN. However, ATT Inc is 1.14 times less risky than SOUTHERN. It trades about 0.18 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.07 per unit of risk. If you would invest 2,231 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 120.00 from holding ATT Inc or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
ATT Inc vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| ATT Inc |
| SOUTHERN CALIF EDISON |
ATT and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and SOUTHERN
The main advantage of trading using opposite ATT and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| ATT vs. Victory Integrity Smallmid Cap | ATT vs. Hilton Worldwide Holdings | ATT vs. NVIDIA | ATT vs. JPMorgan Chase Co |
| SOUTHERN vs. Coty Inc | SOUTHERN vs. Yuexiu Transport Infrastructure | SOUTHERN vs. Stepan Company | SOUTHERN vs. Analog Devices |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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