Correlation Between TuanChe ADR and ATT
Can any of the company-specific risk be diversified away by investing in both TuanChe ADR and ATT 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 TuanChe ADR and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TuanChe ADR and ATT Inc, you can compare the effects of market volatilities on TuanChe ADR and ATT 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 TuanChe ADR with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of TuanChe ADR and ATT.
Diversification Opportunities for TuanChe ADR and ATT
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TuanChe and ATT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and TuanChe ADR 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 TuanChe ADR are associated (or correlated) with ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of TuanChe ADR i.e., TuanChe ADR and ATT go up and down completely randomly.
Pair Corralation between TuanChe ADR and ATT
Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the ATT. In addition to that, TuanChe ADR is 4.54 times more volatile than ATT Inc. It trades about -0.08 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.14 per unit of volatility. If you would invest 1,303 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 1,034 from holding ATT Inc or generate 79.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TuanChe ADR vs. ATT Inc
Performance |
| Timeline |
| TuanChe ADR |
| ATT Inc |
TuanChe ADR and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TuanChe ADR and ATT
The main advantage of trading using opposite TuanChe ADR and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| TuanChe ADR vs. Twilio Inc | TuanChe ADR vs. Meta Platforms | TuanChe ADR vs. Alphabet Inc Class C | TuanChe ADR vs. Alphabet Inc Class A |
| ATT vs. Victory Integrity Smallmid Cap | ATT vs. Hilton Worldwide Holdings | ATT vs. NVIDIA | ATT vs. JPMorgan Chase 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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