Correlation Between Sparindex INDEX and ATT
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By analyzing existing cross correlation between Sparindex INDEX OMX and ATT Inc, you can compare the effects of market volatilities on Sparindex INDEX 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 Sparindex INDEX with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and ATT.
Diversification Opportunities for Sparindex INDEX and ATT
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sparindex and ATT is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX OMX and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Sparindex INDEX 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 Sparindex INDEX OMX 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 Sparindex INDEX i.e., Sparindex INDEX and ATT go up and down completely randomly.
Pair Corralation between Sparindex INDEX and ATT
Assuming the 90 days trading horizon Sparindex INDEX OMX is expected to under-perform the ATT. But the fund apears to be less risky and, when comparing its historical volatility, Sparindex INDEX OMX is 1.52 times less risky than ATT. The fund trades about -0.23 of its potential returns per unit of risk. The ATT Inc is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,693 in ATT Inc on January 20, 2024 and sell it today you would lose (42.00) from holding ATT Inc or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sparindex INDEX OMX vs. ATT Inc
Performance |
| Timeline |
| Sparindex INDEX OMX |
| ATT Inc |
Sparindex INDEX and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparindex INDEX and ATT
The main advantage of trading using opposite Sparindex INDEX and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparindex INDEX 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.| Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Nye | Sparindex INDEX vs. Jyske Invest Hjt | Sparindex INDEX vs. Jyske Invest Lange |
| ATT vs. Grab Holdings | ATT vs. Cadence Design Systems | ATT vs. Aquagold International | ATT vs. Thrivent High Yield |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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