Correlation Between ATT and TARGA
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By analyzing existing cross correlation between ATT Inc and TARGA RES PARTNERS, you can compare the effects of market volatilities on ATT and TARGA 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 TARGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and TARGA.
Diversification Opportunities for ATT and TARGA
Very good diversification
The 3 months correlation between ATT and TARGA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and TARGA RES PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGA RES PARTNERS 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 TARGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGA RES PARTNERS has no effect on the direction of ATT i.e., ATT and TARGA go up and down completely randomly.
Pair Corralation between ATT and TARGA
Taking into account the 90-day investment horizon ATT is expected to generate 18.6 times less return on investment than TARGA. But when comparing it to its historical volatility, ATT Inc is 37.74 times less risky than TARGA. It trades about 0.1 of its potential returns per unit of risk. TARGA RES PARTNERS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,526 in TARGA RES PARTNERS on August 28, 2024 and sell it today you would earn a total of 33.00 from holding TARGA RES PARTNERS or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.74% |
| Values | Daily Returns |
ATT Inc vs. TARGA RES PARTNERS
Performance |
| Timeline |
| ATT Inc |
| TARGA RES PARTNERS |
ATT and TARGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and TARGA
The main advantage of trading using opposite ATT and TARGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, TARGA 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 TARGA will offset losses from the drop in TARGA's long position.| ATT vs. Liberty Broadband Srs | ATT vs. Ribbon Communications | ATT vs. Liberty Broadband Srs | ATT vs. Shenandoah Telecommunications Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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