This module allows you to analyze existing cross correlation between Apple Inc and ATT Inc. You can compare the effects of market volatilities on Apple 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 Apple with a short position of ATT. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
Apple Inc vs ATT Inc
Given the investment horizon of 30 days, Apple Inc is expected to under-perform the ATT. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.38 times less risky than ATT. The stock trades about -0.04 of its potential returns per unit of risk. The ATT Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,417 in ATT Inc on November 13, 2017 and sell it today you would earn a total of 357 from holding ATT Inc or generate 10.45% return on investment over 30 days.
|Time Period||1 Month [change]|
Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ATT Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Apple 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 Apple Inc 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 Apple i.e. Apple and ATT go up and down completely randomly.
Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.