Correlation Between Home24 SE and ATT

Can any of the company-specific risk be diversified away by investing in both Home24 SE 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 Home24 SE and ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Home24 SE and ATT Inc, you can compare the effects of market volatilities on Home24 SE 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 Home24 SE with a short position of ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home24 SE and ATT.

Diversification Opportunities for Home24 SE and ATT

0.0

Correlation Coefficient

Home24 SE  ATT

Pay attention - limited upside

The 3 months correlation between Home24 and ATT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Home24 SE and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and Home24 SE 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 Home24 SE 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 Home24 SE i.e., Home24 SE and ATT go up and down completely randomly.

Pair Corralation between Home24 SE and ATT

If you would invest (100.00) in Home24 SE on January 26, 2024 and sell it today you would earn a total of  100.00  from holding Home24 SE 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

Home24 SE  vs.  ATT Inc

Home24 SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Home24 SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Home24 SE is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

ATT Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Home24 SE and ATT

The main advantage of trading using opposite Home24 SE and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home24 SE 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.

The idea behind Home24 SE and ATT Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.