Correlation Between Celestica and ATT
Can any of the company-specific risk be diversified away by investing in both Celestica 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 Celestica and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and ATT Inc, you can compare the effects of market volatilities on Celestica 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 Celestica with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and ATT.
Diversification Opportunities for Celestica and ATT
Good diversification
The 3 months correlation between Celestica and ATT is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Celestica 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 Celestica 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 Celestica i.e., Celestica and ATT go up and down completely randomly.
Pair Corralation between Celestica and ATT
Considering the 90-day investment horizon Celestica is expected to generate 1.66 times more return on investment than ATT. However, Celestica is 1.66 times more volatile than ATT Inc. It trades about 0.16 of its potential returns per unit of risk. ATT Inc is currently generating about 0.01 per unit of risk. If you would invest 1,072 in Celestica on January 26, 2024 and sell it today you would earn a total of 3,338 from holding Celestica or generate 311.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Celestica vs. ATT Inc
Performance |
Timeline |
Celestica |
ATT Inc |
Celestica and ATT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celestica and ATT
The main advantage of trading using opposite Celestica and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica 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.Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 CEOs Directory module to screen CEOs from public companies around the world.
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