Correlation Between BankInvest Optima and ATT
Can any of the company-specific risk be diversified away by investing in both BankInvest Optima 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 BankInvest Optima and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BankInvest Optima 10 and ATT Inc, you can compare the effects of market volatilities on BankInvest Optima 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 BankInvest Optima with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankInvest Optima and ATT.
Diversification Opportunities for BankInvest Optima and ATT
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BankInvest and ATT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BankInvest Optima 10 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and BankInvest Optima 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 BankInvest Optima 10 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 BankInvest Optima i.e., BankInvest Optima and ATT go up and down completely randomly.
Pair Corralation between BankInvest Optima and ATT
Assuming the 90 days trading horizon BankInvest Optima 10 is expected to under-perform the ATT. But the stock apears to be less risky and, when comparing its historical volatility, BankInvest Optima 10 is 4.96 times less risky than ATT. The stock trades about -0.18 of its potential returns per unit of risk. The ATT Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,684 in ATT Inc on January 25, 2024 and sell it today you would lose (3.00) from holding ATT Inc or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
BankInvest Optima 10 vs. ATT Inc
Performance |
| Timeline |
| BankInvest Optima |
| ATT Inc |
BankInvest Optima and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BankInvest Optima and ATT
The main advantage of trading using opposite BankInvest Optima and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BankInvest Optima 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.| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima vs. AP Mller |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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