Correlation Analysis Between DOW and ATT

This module allows you to analyze existing cross correlation between DOW and ATT. You can compare the effects of market volatilities on DOW 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 DOW with a short position of ATT. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and ATT.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  ATT Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.16 times less return on investment than ATT. But when comparing it to its historical volatility, DOW is 2.07 times less risky than ATT. It trades about 0.11 of its potential returns per unit of risk. ATT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,679  in ATT on November 6, 2019 and sell it today you would earn a total of  166.00  from holding ATT or generate 4.51% return on investment over 30 days.

Pair Corralation between DOW and ATT

0.49
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DOW and ATT

DOW diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and ATT Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT and DOW 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 DOW 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 has no effect on the direction of DOW i.e. DOW and ATT go up and down completely randomly.
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