Correlation Between ATT and Standard
Specify exactly 2 symbols:
By analyzing existing cross correlation between ATT Inc and Standard Chartered Plc, you can compare the effects of market volatilities on ATT and Standard 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 Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Standard.
Diversification Opportunities for ATT and Standard
Poor diversification
The 3 months correlation between ATT and Standard is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Standard Chartered Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Chartered Plc 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 Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Chartered Plc has no effect on the direction of ATT i.e., ATT and Standard go up and down completely randomly.
Pair Corralation between ATT and Standard
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.96 times more return on investment than Standard. However, ATT Inc is 1.04 times less risky than Standard. It trades about 0.18 of its potential returns per unit of risk. Standard Chartered Plc is currently generating about -0.48 per unit of risk. If you would invest 2,215 in ATT Inc on September 13, 2024 and sell it today you would earn a total of 121.00 from holding ATT Inc or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.82% |
| Values | Daily Returns |
ATT Inc vs. Standard Chartered Plc
Performance |
| Timeline |
| ATT Inc |
| Standard Chartered Plc |
ATT and Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Standard
The main advantage of trading using opposite ATT and Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Standard 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 Standard will offset losses from the drop in Standard's long position.The idea behind ATT Inc and Standard Chartered Plc 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.| Standard vs. Eastern Co | Standard vs. JBG SMITH Properties | Standard vs. Sphere Entertainment Co | Standard vs. Microbot Medical |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |