Correlation Between AVIAGP and ATT
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By analyzing existing cross correlation between AVIAGP 9 01 DEC 28 and ATT Inc, you can compare the effects of market volatilities on AVIAGP 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 AVIAGP with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIAGP and ATT.
Diversification Opportunities for AVIAGP and ATT
Very good diversification
The 3 months correlation between AVIAGP and ATT is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AVIAGP 9 01 DEC 28 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and AVIAGP 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 AVIAGP 9 01 DEC 28 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 AVIAGP i.e., AVIAGP and ATT go up and down completely randomly.
Pair Corralation between AVIAGP and ATT
Assuming the 90 days trading horizon AVIAGP 9 01 DEC 28 is expected to under-perform the ATT. In addition to that, AVIAGP is 3.59 times more volatile than ATT Inc. It trades about -0.26 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.25 per unit of volatility. If you would invest 2,212 in ATT Inc on September 2, 2024 and sell it today you would earn a total of 104.00 from holding ATT Inc or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
AVIAGP 9 01 DEC 28 vs. ATT Inc
Performance |
| Timeline |
| AVIAGP 9 01 |
| ATT Inc |
AVIAGP and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVIAGP and ATT
The main advantage of trading using opposite AVIAGP and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIAGP 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.| AVIAGP vs. Franklin Credit Management | AVIAGP vs. National Beverage Corp | AVIAGP vs. Logan Ridge Finance | AVIAGP vs. Allient |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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