Correlation Between PLNIJ and ATT
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By analyzing existing cross correlation between PLNIJ 4125 15 MAY 27 and ATT Inc, you can compare the effects of market volatilities on PLNIJ 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 PLNIJ with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLNIJ and ATT.
Diversification Opportunities for PLNIJ and ATT
Poor diversification
The 3 months correlation between PLNIJ and ATT is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding PLNIJ 4125 15 MAY 27 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and PLNIJ 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 PLNIJ 4125 15 MAY 27 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 PLNIJ i.e., PLNIJ and ATT go up and down completely randomly.
Pair Corralation between PLNIJ and ATT
Assuming the 90 days trading horizon PLNIJ 4125 15 MAY 27 is expected to under-perform the ATT. In addition to that, PLNIJ is 1.63 times more volatile than ATT Inc. It trades about -0.53 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 Together |
| Strength | Significant |
| Accuracy | 14.29% |
| Values | Daily Returns |
PLNIJ 4125 15 MAY 27 vs. ATT Inc
Performance |
| Timeline |
| PLNIJ 4125 15 |
| ATT Inc |
PLNIJ and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLNIJ and ATT
The main advantage of trading using opposite PLNIJ and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLNIJ 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 PLNIJ 4125 15 MAY 27 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.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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