Correlation Between 90931EAA2 and ATT
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By analyzing existing cross correlation between US90931EAA29 and ATT Inc, you can compare the effects of market volatilities on 90931EAA2 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 90931EAA2 with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90931EAA2 and ATT.
Diversification Opportunities for 90931EAA2 and ATT
Modest diversification
The 3 months correlation between 90931EAA2 and ATT is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding US90931EAA29 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and 90931EAA2 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 US90931EAA29 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 90931EAA2 i.e., 90931EAA2 and ATT go up and down completely randomly.
Pair Corralation between 90931EAA2 and ATT
Assuming the 90 days trading horizon US90931EAA29 is expected to under-perform the ATT. In addition to that, 90931EAA2 is 2.11 times more volatile than ATT Inc. It trades about 0.0 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.17 per unit of volatility. If you would invest 1,785 in ATT Inc on September 2, 2024 and sell it today you would earn a total of 531.00 from holding ATT Inc or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 15.08% |
| Values | Daily Returns |
US90931EAA29 vs. ATT Inc
Performance |
| Timeline |
| US90931EAA29 |
| ATT Inc |
90931EAA2 and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90931EAA2 and ATT
The main advantage of trading using opposite 90931EAA2 and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90931EAA2 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.| 90931EAA2 vs. ATT Inc | 90931EAA2 vs. Home Depot | 90931EAA2 vs. Cisco Systems | 90931EAA2 vs. Dupont De Nemours |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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