Correlation Between ATT and GraniteShares XOUT
Can any of the company-specific risk be diversified away by investing in both ATT and GraniteShares XOUT 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 GraniteShares XOUT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and GraniteShares XOUT Large, you can compare the effects of market volatilities on ATT and GraniteShares XOUT 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 GraniteShares XOUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and GraniteShares XOUT.
Diversification Opportunities for ATT and GraniteShares XOUT
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATT and GraniteShares is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and GraniteShares XOUT Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares XOUT Large 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 GraniteShares XOUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares XOUT Large has no effect on the direction of ATT i.e., ATT and GraniteShares XOUT go up and down completely randomly.
Pair Corralation between ATT and GraniteShares XOUT
Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.12 times more return on investment than GraniteShares XOUT. However, ATT is 1.12 times more volatile than GraniteShares XOUT Large. It trades about 0.4 of its potential returns per unit of risk. GraniteShares XOUT Large is currently generating about 0.02 per unit of risk. If you would invest 2,232 in ATT Inc on November 30, 2024 and sell it today you would earn a total of 509.00 from holding ATT Inc or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. GraniteShares XOUT Large
Performance |
| Timeline |
| ATT Inc |
| GraniteShares XOUT Large |
ATT and GraniteShares XOUT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and GraniteShares XOUT
The main advantage of trading using opposite ATT and GraniteShares XOUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, GraniteShares XOUT 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 GraniteShares XOUT will offset losses from the drop in GraniteShares XOUT's long position.The idea behind ATT Inc and GraniteShares XOUT Large 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.| GraniteShares XOUT vs. GraniteShares HIPS High | GraniteShares XOUT vs. SoFi Social 50 | GraniteShares XOUT vs. Invesco SP 500 | GraniteShares XOUT vs. GraniteShares Bloomberg Commodity |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |