Correlation Analysis Between DOW and ATT

This module allows you to analyze existing cross correlation between DOW and ATT. You can compare the effects of market volatilities on DOW 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 DOW with a short position of ATT. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ATT.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  ATT

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.71 times more return on investment than ATT. However, DOW is 1.41 times less risky than ATT. It trades about -0.13 of its potential returns per unit of risk. ATT is currently generating about -0.12 per unit of risk. If you would invest  2,544,434  in DOW on November 18, 2018 and sell it today you would lose (185,136)  from holding DOW or give up 7.28% of portfolio value over 30 days.

Pair Corralation between DOW and ATT

0.61
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DOW and ATT

DOW diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ATT in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT and DOW 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 DOW 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 has no effect on the direction of DOW i.e. DOW and ATT go up and down completely randomly.
    Optimize

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
Search macroaxis.com