Correlation Between ATT and Bald Eagle

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ATT and Bald Eagle 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 ATT and Bald Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Bald Eagle Gold, you can compare the effects of market volatilities on ATT and Bald Eagle 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 ATT with a short position of Bald Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Bald Eagle.

Diversification Opportunities for ATT and Bald Eagle

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between ATT and BADEF is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Bald Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bald Eagle Gold and ATT 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 ATT Inc are associated (or correlated) with Bald Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bald Eagle Gold has no effect on the direction of ATT i.e., ATT and Bald Eagle go up and down completely randomly.

Pair Corralation between ATT and Bald Eagle

Taking into account the 90-day investment horizon ATT is expected to generate 5.1 times less return on investment than Bald Eagle. But when comparing it to its historical volatility, ATT Inc is 5.97 times less risky than Bald Eagle. It trades about 0.23 of its potential returns per unit of risk. Bald Eagle Gold is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  5.74  in Bald Eagle Gold on September 8, 2022 and sell it today you would earn a total of  1.52  from holding Bald Eagle Gold or generate 26.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ATT Inc  vs.  Bald Eagle Gold

 Performance (%) 
       Timeline  
ATT Inc 
ATT Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.

ATT Price Channel

Bald Eagle Gold 
BADEF Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bald Eagle Gold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Bald Eagle exhibited solid returns over the last few months and may actually be approaching a breakup point.

BADEF Price Channel

ATT and Bald Eagle Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and Bald Eagle

The main advantage of trading using opposite ATT and Bald Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Bald Eagle 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 Bald Eagle will offset losses from the drop in Bald Eagle's long position.
ATT vs. Pfizer Inc
ATT vs. Bank Of America
ATT vs. Johnson Johnson
ATT vs. 3M Company
The idea behind ATT Inc and Bald Eagle Gold 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.
Bald Eagle vs. McDonalds
Bald Eagle vs. Bondbloxx ETF Trust
Bald Eagle vs. Bondbloxx ETF Trust
Bald Eagle vs. AMERICAN FUNDS 2060
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go