Correlation Between SIEGR and ATT
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By analyzing existing cross correlation between SIEGR 215 11 MAR 31 and ATT Inc, you can compare the effects of market volatilities on SIEGR 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 SIEGR with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEGR and ATT.
Diversification Opportunities for SIEGR and ATT
Good diversification
The 3 months correlation between SIEGR and ATT is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SIEGR 215 11 MAR 31 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and SIEGR 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 SIEGR 215 11 MAR 31 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 SIEGR i.e., SIEGR and ATT go up and down completely randomly.
Pair Corralation between SIEGR and ATT
Assuming the 90 days trading horizon SIEGR is expected to generate 67.04 times less return on investment than ATT. But when comparing it to its historical volatility, SIEGR 215 11 MAR 31 is 2.41 times less risky than ATT. It trades about 0.0 of its potential returns per unit of risk. ATT Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,610 in ATT Inc on September 2, 2024 and sell it today you would earn a total of 706.00 from holding ATT Inc or generate 43.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.16% |
| Values | Daily Returns |
SIEGR 215 11 MAR 31 vs. ATT Inc
Performance |
| Timeline |
| SIEGR 215 11 |
| ATT Inc |
SIEGR and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEGR and ATT
The main advantage of trading using opposite SIEGR and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEGR 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 SIEGR 215 11 MAR 31 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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