Correlation Between ATT and STATE
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By analyzing existing cross correlation between ATT Inc and STATE STREET P, you can compare the effects of market volatilities on ATT and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and STATE.
Diversification Opportunities for ATT and STATE
Excellent diversification
The 3 months correlation between ATT and STATE is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of ATT i.e., ATT and STATE go up and down completely randomly.
Pair Corralation between ATT and STATE
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.67 times more return on investment than STATE. However, ATT is 1.67 times more volatile than STATE STREET P. It trades about 0.24 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.12 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATT Inc vs. STATE STREET P
Performance |
| Timeline |
| ATT Inc |
| STATE STREET P |
ATT and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and STATE
The main advantage of trading using opposite ATT and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| STATE vs. Dalata Hotel Group | STATE vs. Century Aluminum | STATE vs. Summit Environmental | STATE vs. Olympic Steel |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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