Correlation Between Webster Financial and ATT
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By analyzing existing cross correlation between Webster Financial and ATT Inc, you can compare the effects of market volatilities on Webster Financial 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 Webster Financial with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and ATT.
Diversification Opportunities for Webster Financial and ATT
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Webster and ATT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Webster Financial 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 Webster Financial 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 Webster Financial i.e., Webster Financial and ATT go up and down completely randomly.
Pair Corralation between Webster Financial and ATT
Assuming the 90 days horizon Webster Financial is expected to generate 0.99 times more return on investment than ATT. However, Webster Financial is 1.01 times less risky than ATT. It trades about 0.21 of its potential returns per unit of risk. ATT Inc is currently generating about 0.13 per unit of risk. If you would invest 5,300 in Webster Financial on November 4, 2024 and sell it today you would earn a total of 450.00 from holding Webster Financial or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Webster Financial vs. ATT Inc
Performance |
| Timeline |
| Webster Financial |
| ATT Inc |
Webster Financial and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and ATT
The main advantage of trading using opposite Webster Financial and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial 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.| Webster Financial vs. GungHo Online Entertainment | Webster Financial vs. DAIRY FARM INTL | Webster Financial vs. CODERE ONLINE LUX | Webster Financial vs. Federal Agricultural Mortgage |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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