Correlation Between ATT and 654106AH6
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By analyzing existing cross correlation between ATT Inc and NIKE INC, you can compare the effects of market volatilities on ATT and 654106AH6 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 654106AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and 654106AH6.
Diversification Opportunities for ATT and 654106AH6
Very good diversification
The 3 months correlation between ATT and 654106AH6 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and NIKE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 654106AH6 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 654106AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 654106AH6 has no effect on the direction of ATT i.e., ATT and 654106AH6 go up and down completely randomly.
Pair Corralation between ATT and 654106AH6
Taking into account the 90-day investment horizon ATT Inc is expected to generate 11.73 times more return on investment than 654106AH6. However, ATT is 11.73 times more volatile than NIKE INC. It trades about 0.26 of its potential returns per unit of risk. NIKE INC is currently generating about -0.07 per unit of risk. If you would invest 2,232 in ATT Inc on December 29, 2024 and sell it today you would earn a total of 588.00 from holding ATT Inc or generate 26.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.72% |
Values | Daily Returns |
ATT Inc vs. NIKE INC
Performance |
Timeline |
ATT Inc |
654106AH6 |
ATT and 654106AH6 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATT and 654106AH6
The main advantage of trading using opposite ATT and 654106AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, 654106AH6 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 654106AH6 will offset losses from the drop in 654106AH6's long position.ATT vs. Liberty Global PLC | ATT vs. Liberty Latin America | ATT vs. Liberty Latin America | ATT vs. Liberty Broadband Srs |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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