Correlation Between Maj Invest and ATT
Can any of the company-specific risk be diversified away by investing in both Maj Invest 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 Maj Invest and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest Pension and ATT Inc, you can compare the effects of market volatilities on Maj Invest 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 Maj Invest with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and ATT.
Diversification Opportunities for Maj Invest and ATT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maj and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Pension and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Maj Invest 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 Maj Invest Pension 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 Maj Invest i.e., Maj Invest and ATT go up and down completely randomly.
Pair Corralation between Maj Invest and ATT
Assuming the 90 days trading horizon Maj Invest Pension is expected to under-perform the ATT. But the stock apears to be less risky and, when comparing its historical volatility, Maj Invest Pension is 3.22 times less risky than ATT. The stock trades about -0.21 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 (2.00) from holding ATT Inc or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Maj Invest Pension vs. ATT Inc
Performance |
| Timeline |
| Maj Invest Pension |
| ATT Inc |
Maj Invest and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and ATT
The main advantage of trading using opposite Maj Invest and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |