Correlation Between LLOYDS and ATT
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By analyzing existing cross correlation between LLOYDS 5871 06 MAR 29 and ATT Inc, you can compare the effects of market volatilities on LLOYDS 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 LLOYDS with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS and ATT.
Diversification Opportunities for LLOYDS and ATT
Excellent diversification
The 3 months correlation between LLOYDS and ATT is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS 5871 06 MAR 29 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and LLOYDS 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 LLOYDS 5871 06 MAR 29 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 LLOYDS i.e., LLOYDS and ATT go up and down completely randomly.
Pair Corralation between LLOYDS and ATT
Assuming the 90 days trading horizon LLOYDS is expected to generate 5.01 times less return on investment than ATT. But when comparing it to its historical volatility, LLOYDS 5871 06 MAR 29 is 2.88 times less risky than ATT. It trades about 0.19 of its potential returns per unit of risk. ATT Inc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,192 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 124.00 from holding ATT Inc or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LLOYDS 5871 06 MAR 29 vs. ATT Inc
Performance |
| Timeline |
| LLOYDS 5871 06 |
| ATT Inc |
LLOYDS and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LLOYDS and ATT
The main advantage of trading using opposite LLOYDS and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS 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.The idea behind LLOYDS 5871 06 MAR 29 and ATT Inc 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.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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