Correlation Between Hostess Brands and ATT
Can any of the company-specific risk be diversified away by investing in both Hostess Brands 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 Hostess Brands and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hostess Brands and ATT Inc, you can compare the effects of market volatilities on Hostess Brands 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 Hostess Brands with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hostess Brands and ATT.
Diversification Opportunities for Hostess Brands and ATT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hostess and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hostess Brands and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Hostess Brands 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 Hostess Brands 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 Hostess Brands i.e., Hostess Brands and ATT go up and down completely randomly.
Pair Corralation between Hostess Brands and ATT
If you would invest (100.00) in Hostess Brands on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Hostess Brands or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hostess Brands vs. ATT Inc
Performance |
| Timeline |
| Hostess Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ATT Inc |
Hostess Brands and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hostess Brands and ATT
The main advantage of trading using opposite Hostess Brands and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hostess Brands 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.| Hostess Brands vs. Eldorado Gold Corp | Hostess Brands vs. Old Dominion Freight | Hostess Brands vs. East Africa Metals | Hostess Brands vs. TFI International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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