Correlation Between Surge Copper and ATT

Can any of the company-specific risk be diversified away by investing in both Surge Copper 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 Surge Copper and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Surge Copper and ATT

-0.75

Correlation Coefficient

Surge Copper  ATT

Pay attention - limited upside

The 3 months correlation between Surge and ATT is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Surge Copper 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 Surge Copper Corp 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 Surge Copper i.e., Surge Copper and ATT go up and down completely randomly.

Pair Corralation between Surge Copper and ATT

Assuming the 90 days horizon Surge Copper Corp is expected to under-perform the ATT. In addition to that, Surge Copper is 4.31 times more volatile than ATT Inc. It trades about -0.08 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.16 per unit of volatility. If you would invest  2,017  in ATT Inc on September 3, 2024 and sell it today you would earn a total of  253.00  from holding ATT Inc or generate 12.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Surge Copper Corp  vs.  ATT Inc

Surge Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

ATT Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, ATT may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Surge Copper and ATT

The main advantage of trading using opposite Surge Copper and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surge Copper 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 Surge Copper Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.