Correlation Between BNC Bancorp and ATT
Can any of the company-specific risk be diversified away by investing in both BNC Bancorp 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 BNC Bancorp and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNC Bancorp and ATT Inc, you can compare the effects of market volatilities on BNC Bancorp 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 BNC Bancorp with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNC Bancorp and ATT.
Diversification Opportunities for BNC Bancorp and ATT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BNC and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BNC Bancorp and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and BNC Bancorp 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 BNC Bancorp 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 BNC Bancorp i.e., BNC Bancorp and ATT go up and down completely randomly.
Pair Corralation between BNC Bancorp and ATT
If you would invest 1,633 in ATT Inc on January 26, 2024 and sell it today you would earn a total of 48.00 from holding ATT Inc or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BNC Bancorp vs. ATT Inc
Performance |
| Timeline |
| BNC Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ATT Inc |
BNC Bancorp and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNC Bancorp and ATT
The main advantage of trading using opposite BNC Bancorp and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNC Bancorp 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.| BNC Bancorp vs. WT Offshore | BNC Bancorp vs. Shelf Drilling | BNC Bancorp vs. Jutal Offshore Oil | BNC Bancorp vs. Crimson Wine |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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