Correlation Between GLOBAL BOND and ATT

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

Diversification Opportunities for GLOBAL BOND and ATT

  Correlation Coefficient

Average diversification

The 3 months correlation between GLOBAL and ATT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GLOBAL BOND FUND and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and GLOBAL BOND 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 GLOBAL BOND FUND 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 GLOBAL BOND i.e., GLOBAL BOND and ATT go up and down completely randomly.

Pair Corralation between GLOBAL BOND and ATT

Assuming the 90 days horizon GLOBAL BOND FUND is expected to under-perform the ATT. But the mutual fund apears to be less risky and, when comparing its historical volatility, GLOBAL BOND FUND is 5.72 times less risky than ATT. The mutual fund trades about -0.08 of its potential returns per unit of risk. The ATT Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,936  in ATT Inc on September 7, 2022 and sell it today you would lose (61.00)  from holding ATT Inc or give up 3.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns


 Performance (%) 
GLOBAL Performance
0 of 100
Over the last 90 days GLOBAL BOND FUND has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, GLOBAL BOND is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GLOBAL Price Channel

ATT Inc 
ATT Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 9 (%) 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

GLOBAL BOND and ATT Volatility Contrast

   Predicted Return Density   

Pair Trading with GLOBAL BOND and ATT

The main advantage of trading using opposite GLOBAL BOND and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBAL BOND 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.
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The idea behind GLOBAL BOND FUND 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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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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