Correlation Between ATT and Via Optronics
Can any of the company-specific risk be diversified away by investing in both ATT and Via Optronics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ATT and Via Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Via Optronics Ag, you can compare the effects of market volatilities on ATT and Via Optronics 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 Via Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Via Optronics.
Diversification Opportunities for ATT and Via Optronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATT and Via is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Via Optronics Ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Optronics Ag 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 Via Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Optronics Ag has no effect on the direction of ATT i.e., ATT and Via Optronics go up and down completely randomly.
Pair Corralation between ATT and Via Optronics
If you would invest 1,629 in ATT Inc on November 29, 2024 and sell it today you would earn a total of 1,058 from holding ATT Inc or generate 64.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ATT Inc vs. Via Optronics Ag
Performance |
| Timeline |
| ATT Inc |
| Via Optronics Ag |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ATT and Via Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Via Optronics
The main advantage of trading using opposite ATT and Via Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Via Optronics 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 Via Optronics will offset losses from the drop in Via Optronics' long position.The idea behind ATT Inc and Via Optronics Ag 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.| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
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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