Correlation Between ATT and CONSOLIDATED
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By analyzing existing cross correlation between ATT Inc and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on ATT and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and CONSOLIDATED.
Diversification Opportunities for ATT and CONSOLIDATED
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATT and CONSOLIDATED is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of ATT i.e., ATT and CONSOLIDATED go up and down completely randomly.
Pair Corralation between ATT and CONSOLIDATED
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.95 times more return on investment than CONSOLIDATED. However, ATT Inc is 1.05 times less risky than CONSOLIDATED. It trades about 0.94 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.23 per unit of risk. If you would invest 2,425 in ATT Inc on December 5, 2024 and sell it today you would earn a total of 347.00 from holding ATT Inc or generate 14.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
ATT Inc vs. CONSOLIDATED EDISON N
Performance |
Timeline |
ATT Inc |
CONSOLIDATED EDISON |
ATT and CONSOLIDATED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATT and CONSOLIDATED
The main advantage of trading using opposite ATT and CONSOLIDATED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, CONSOLIDATED 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 CONSOLIDATED will offset losses from the drop in CONSOLIDATED's long position.The idea behind ATT Inc and CONSOLIDATED EDISON N 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.CONSOLIDATED vs. Harmony Gold Mining | CONSOLIDATED vs. Chester Mining | CONSOLIDATED vs. KVH Industries | CONSOLIDATED vs. Insteel Industries |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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