Correlation Between ATT and Cellcom Israel

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Can any of the company-specific risk be diversified away by investing in both ATT and Cellcom Israel 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 ATT and Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Cellcom Israel, you can compare the effects of market volatilities on ATT and Cellcom Israel 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 Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Cellcom Israel.

Diversification Opportunities for ATT and Cellcom Israel

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ATT and Cellcom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Cellcom Israel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellcom Israel 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 Cellcom Israel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellcom Israel has no effect on the direction of ATT i.e., ATT and Cellcom Israel go up and down completely randomly.

Pair Corralation between ATT and Cellcom Israel

If you would invest (100.00) in Cellcom Israel on January 19, 2024 and sell it today you would earn a total of  100.00  from holding Cellcom Israel or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ATT Inc  vs.  Cellcom Israel

 Performance 
       Timeline  
ATT Inc 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATT is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Cellcom Israel 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cellcom Israel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Cellcom Israel is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

ATT and Cellcom Israel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and Cellcom Israel

The main advantage of trading using opposite ATT and Cellcom Israel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Cellcom Israel 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 Cellcom Israel will offset losses from the drop in Cellcom Israel's long position.
The idea behind ATT Inc and Cellcom Israel 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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