Correlation Between PLNIJ and ATT
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By analyzing existing cross correlation between PLNIJ 525 24 OCT 42 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
Good diversification
The 3 months correlation between PLNIJ and ATT is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PLNIJ 525 24 OCT 42 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 525 24 OCT 42 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 is expected to generate 1.39 times less return on investment than ATT. In addition to that, PLNIJ is 1.56 times more volatile than ATT Inc. It trades about 0.02 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.05 per unit of volatility. If you would invest 1,688 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 628.00 from holding ATT Inc or generate 37.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.92% |
| Values | Daily Returns |
PLNIJ 525 24 OCT 42 vs. ATT Inc
Performance |
| Timeline |
| PLNIJ 525 24 |
| 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.| PLNIJ vs. PennantPark Floating Rate | PLNIJ vs. Franklin Credit Management | PLNIJ vs. Teleflex Incorporated | PLNIJ vs. WPP PLC ADR |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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