Correlation Between 693304BC0 and ATT

Can any of the company-specific risk be diversified away by investing in both 693304BC0 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 693304BC0 and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EXC 285 15 SEP 51 and ATT Inc, you can compare the effects of market volatilities on 693304BC0 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 693304BC0 with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of 693304BC0 and ATT.

Diversification Opportunities for 693304BC0 and ATT

-0.59

Correlation Coefficient

693304BC0  ATT

Excellent diversification

The 3 months correlation between 693304BC0 and ATT is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding EXC 285 15 SEP 51 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and 693304BC0 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 EXC 285 15 SEP 51 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 693304BC0 i.e., 693304BC0 and ATT go up and down completely randomly.

Pair Corralation between 693304BC0 and ATT

Assuming the 90 days trading horizon EXC 285 15 SEP 51 is expected to under-perform the ATT. But the bond apears to be less risky and, when comparing its historical volatility, EXC 285 15 SEP 51 is 1.04 times less risky than ATT. The bond trades about -0.14 of its potential returns per unit of risk. The ATT Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,286  in ATT Inc on November 29, 2024 and sell it today you would earn a total of  371.00  from holding ATT Inc or generate 16.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	59.32%
Values	Daily Returns

EXC 285 15 SEP 51  vs.  ATT Inc

EXC 285 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days EXC 285 15 SEP 51 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for EXC 285 15 SEP 51 investors.

ATT Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 14 (%) 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.

Pair Trading with 693304BC0 and ATT

The main advantage of trading using opposite 693304BC0 and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 693304BC0 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 EXC 285 15 SEP 51 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.