Correlation Between US Commodity and ATT
Can any of the company-specific risk be diversified away by investing in both US Commodity and ATT 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 US Commodity and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Commodity Funds and ATT Inc, you can compare the effects of market volatilities on US Commodity 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 US Commodity with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Commodity and ATT.
Diversification Opportunities for US Commodity and ATT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USOU and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Commodity Funds and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and US Commodity 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 US Commodity Funds 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 US Commodity i.e., US Commodity and ATT go up and down completely randomly.
Pair Corralation between US Commodity and ATT
If you would invest (100.00) in US Commodity Funds on January 24, 2024 and sell it today you would earn a total of 100.00 from holding US Commodity Funds or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Commodity Funds vs. ATT Inc
Performance |
| Timeline |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ATT Inc |
US Commodity and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Commodity and ATT
The main advantage of trading using opposite US Commodity and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Commodity position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| US Commodity vs. ProShares UltraShort Silver | US Commodity vs. ProShares UltraShort Gold | US Commodity vs. VanEck Junior Gold |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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