Correlation Between Progressive Planet and ATT

Can any of the company-specific risk be diversified away by investing in both Progressive Planet and ATT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Progressive Planet and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Progressive Planet Solutions and ATT Inc, you can compare the effects of market volatilities on Progressive Planet 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 Progressive Planet with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progressive Planet and ATT.

Diversification Opportunities for Progressive Planet and ATT

-0.8

Correlation Coefficient

Progressive Planet  ATT

Pay attention - limited upside

The 3 months correlation between Progressive and ATT is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Progressive Planet Solutions and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Progressive Planet 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 Progressive Planet Solutions 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 Progressive Planet i.e., Progressive Planet and ATT go up and down completely randomly.

Pair Corralation between Progressive Planet and ATT

Assuming the 90 days horizon Progressive Planet Solutions is expected to under-perform the ATT. In addition to that, Progressive Planet is 2.16 times more volatile than ATT Inc. It trades about -0.07 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.26 per unit of volatility. If you would invest  2,232  in ATT Inc on December 28, 2024 and sell it today you would earn a total of  586.00  from holding ATT Inc or generate 26.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Progressive Planet Solutions  vs.  ATT Inc

Progressive Planet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Progressive Planet Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATT Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Progressive Planet and ATT

The main advantage of trading using opposite Progressive Planet and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progressive Planet 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 Progressive Planet Solutions 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.