Correlation Between ATT and AKA Brands

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

Diversification Opportunities for ATT and AKA Brands

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between ATT and AKA Brands is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands Holding 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 AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of ATT i.e., ATT and AKA Brands go up and down completely randomly.

Pair Corralation between ATT and AKA Brands

Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.25 times more return on investment than AKA Brands. However, ATT Inc is 4.01 times less risky than AKA Brands. It trades about 0.0 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.06 per unit of risk. 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 
StrengthWeak
Accuracy61.29%
ValuesDaily Returns

ATT Inc  vs.  AKA Brands Holding

 Performance (%) 
       Timeline  
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

AKA Brands Holding 
AKA Brands Performance
0 of 100
Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for the company investors.

AKA Brands Price Channel

ATT and AKA Brands Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and AKA Brands

The main advantage of trading using opposite ATT and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.
ATT vs. Dupont De Nemours
ATT vs. Bank Of America
ATT vs. Intel
ATT vs. Pfizer Inc
The idea behind ATT Inc and AKA Brands Holding 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.
AKA Brands vs. Amazon Inc
AKA Brands vs. Alibaba Group Holding
AKA Brands vs. JD Inc Adr
AKA Brands vs. Caesars Entertainment
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go