Pair Correlation Between Apple and ATT

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 and ATT.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Apple Inc  vs   ATT Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple Inc is expected to generate 1.15 times more return on investment than ATT. However, Apple is 1.15 times more volatile than ATT Inc. It trades about 0.03 of its potential returns per unit of risk. ATT Inc is currently generating about -0.01 per unit of risk. If you would invest  17,422  in Apple Inc on January 24, 2018 and sell it today you would earn a total of  133.50  from holding Apple Inc or generate 0.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and ATT
0.28

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Modest 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Apple Inc

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

ATT Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions.