Correlation Analysis Between Merck and ATT

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

Merck  
00

Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The existing stock price confusion, may contribute to short-horizon losses for the traders.
ATT  
1414

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ATT are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively sluggish essential indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Merck and ATT Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  ATT Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck Company is expected to under-perform the ATT. In addition to that, Merck is 1.17 times more volatile than ATT. It trades about -0.02 of its total potential returns per unit of risk. ATT is currently generating about 0.21 per unit of volatility. If you would invest  3,205  in ATT on August 19, 2019 and sell it today you would earn a total of  511.00  from holding ATT or generate 15.94% return on investment over 30 days.

Pair Corralation between Merck and ATT

0.76
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Merck and ATT

Merck Company Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and ATT Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT and Merck 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 Merck Company 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 Merck i.e. Merck and ATT go up and down completely randomly.
See also your portfolio center. Please also try Equity Analysis module to research over 250,000 global equities including funds, stocks and etfs to find investment opportunities.


 
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