This module allows you to analyze existing cross correlation between ATT Inc and Ford Motor Company. You can compare the effects of market volatilities on ATT and Ford Motor 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 Ford Motor. See also your portfolio center
. Please also check ongoing floating volatility patterns of ATT
and Ford Motor
ATT Inc vs Ford Motor Company
Taking into account the 30 trading days horizon, ATT Inc is expected to generate 1.48 times more return on investment than Ford Motor. However, ATT is 1.48 times more volatile than Ford Motor Company. It trades about 0.36 of its potential returns per unit of risk. Ford Motor Company is currently generating about 0.23 per unit of risk. If you would invest 3,452 in ATT Inc on November 16, 2017 and sell it today you would earn a total of 372 from holding ATT Inc or generate 10.78% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of ATT i.e. ATT and Ford Motor go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.