Correlation Between GENERAL and ATT
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By analyzing existing cross correlation between GENERAL ELEC CAP and ATT Inc, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and ATT.
Diversification Opportunities for GENERAL and ATT
Pay attention - limited upside
The 3 months correlation between GENERAL and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and GENERAL 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 GENERAL ELEC CAP 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 GENERAL i.e., GENERAL and ATT go up and down completely randomly.
Pair Corralation between GENERAL and ATT
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to under-perform the ATT. In addition to that, GENERAL is 1.35 times more volatile than ATT Inc. It trades about -0.03 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 | Flat |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. ATT Inc
Performance |
| Timeline |
| GENERAL ELEC CAP |
| ATT Inc |
GENERAL and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and ATT
The main advantage of trading using opposite GENERAL and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Amkor Technology | GENERAL vs. Eldorado Gold Corp | GENERAL vs. Mediag3 | GENERAL vs. Harmony Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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