Correlation Between Ashot Ashkelon and ATT
Can any of the company-specific risk be diversified away by investing in both Ashot Ashkelon 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 Ashot Ashkelon and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashot Ashkelon Industries and ATT Inc, you can compare the effects of market volatilities on Ashot Ashkelon 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 Ashot Ashkelon with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashot Ashkelon and ATT.
Diversification Opportunities for Ashot Ashkelon and ATT
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ashot and ATT is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ashot Ashkelon Industries and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Ashot Ashkelon 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 Ashot Ashkelon Industries 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 Ashot Ashkelon i.e., Ashot Ashkelon and ATT go up and down completely randomly.
Pair Corralation between Ashot Ashkelon and ATT
Assuming the 90 days trading horizon Ashot Ashkelon Industries is expected to under-perform the ATT. In addition to that, Ashot Ashkelon is 3.41 times more volatile than ATT Inc. It trades about -0.06 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.0 per unit of volatility. If you would invest 1,684 in ATT Inc on January 25, 2024 and sell it today you would lose (2.00) from holding ATT Inc or give up 0.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 77.27% |
Values | Daily Returns |
Ashot Ashkelon Industries vs. ATT Inc
Performance |
Timeline |
Ashot Ashkelon Industries |
ATT Inc |
Ashot Ashkelon and ATT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ashot Ashkelon and ATT
The main advantage of trading using opposite Ashot Ashkelon and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashot Ashkelon 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.Ashot Ashkelon vs. Alony Hetz Properties | Ashot Ashkelon vs. Melisron | Ashot Ashkelon vs. Shufersal | Ashot Ashkelon vs. Israel Discount Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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