Correlation Between ATT and Oaktree (lux)

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

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

Diversification Opportunities for ATT and Oaktree (lux)

0.92

Correlation Coefficient

ATT  Oaktree (lux)

Almost no diversification

The 3 months correlation between ATT and Oaktree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) and ATT 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 ATT Inc are associated (or correlated) with Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of ATT i.e., ATT and Oaktree (lux) go up and down completely randomly.

Pair Corralation between ATT and Oaktree (lux)

Taking into account the 90-day investment horizon ATT Inc is expected to generate 16.94 times more return on investment than Oaktree (lux). However, ATT is 16.94 times more volatile than Oaktree Iii . It trades about 0.2 of its potential returns per unit of risk. Oaktree Iii is currently generating about 0.23 per unit of risk. If you would invest  2,255  in ATT Inc on December 21, 2024 and sell it today you would earn a total of  424.00  from holding ATT Inc or generate 18.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

ATT Inc  vs.  Oaktree Iii

ATT Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Oaktree (lux)

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ATT and Oaktree (lux)

The main advantage of trading using opposite ATT and Oaktree (lux) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Oaktree (lux) 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 Oaktree (lux) will offset losses from the drop in Oaktree (lux)'s long position.

The idea behind ATT Inc and Oaktree Iii 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.