Correlation Between ATT and SUMITOMO
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By analyzing existing cross correlation between ATT Inc and SUMITOMO MITSUI FINL, you can compare the effects of market volatilities on ATT and SUMITOMO 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 SUMITOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and SUMITOMO.
Diversification Opportunities for ATT and SUMITOMO
Excellent diversification
The 3 months correlation between ATT and SUMITOMO is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and SUMITOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITOMO MITSUI FINL 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 SUMITOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITOMO MITSUI FINL has no effect on the direction of ATT i.e., ATT and SUMITOMO go up and down completely randomly.
Pair Corralation between ATT and SUMITOMO
Taking into account the 90-day investment horizon ATT Inc is expected to generate 2.13 times more return on investment than SUMITOMO. However, ATT is 2.13 times more volatile than SUMITOMO MITSUI FINL. It trades about 0.24 of its potential returns per unit of risk. SUMITOMO MITSUI FINL is currently generating about -0.17 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATT Inc vs. SUMITOMO MITSUI FINL
Performance |
| Timeline |
| ATT Inc |
| SUMITOMO MITSUI FINL |
ATT and SUMITOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and SUMITOMO
The main advantage of trading using opposite ATT and SUMITOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, SUMITOMO 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 SUMITOMO will offset losses from the drop in SUMITOMO's long position.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| SUMITOMO vs. Minerals Technologies | SUMITOMO vs. GMS Inc | SUMITOMO vs. AerSale Corp | SUMITOMO vs. EvoAir Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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