Correlation Between ATT and BELLUS Health

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

Diversification Opportunities for ATT and BELLUS Health

-0.44
  Correlation Coefficient

Very good diversification

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

Pair Corralation between ATT and BELLUS Health

Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.07 times more return on investment than BELLUS Health. However, ATT Inc is 13.58 times less risky than BELLUS Health. It trades about 0.14 of its potential returns per unit of risk. BELLUS Health is currently generating about -0.17 per unit of risk. If you would invest  1,843  in ATT Inc on September 3, 2022 and sell it today you would earn a total of  56.50  from holding ATT Inc or generate 3.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

ATT Inc  vs.  BELLUS Health

 Performance (%) 
       Timeline  
ATT Inc 
ATT Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, ATT unveiled solid returns over the last few months and may actually be approaching a breakup point.

ATT Price Channel

BELLUS Health 
BELLUS Performance
0 of 100
Over the last 90 days BELLUS Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

BELLUS Price Channel

ATT and BELLUS Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and BELLUS Health

The main advantage of trading using opposite ATT and BELLUS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, BELLUS Health 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 BELLUS Health will offset losses from the drop in BELLUS Health's long position.
ATT vs. Linde PLC
ATT vs. Etsy Inc
ATT vs. Anheuser-Busch InBev SANV
ATT vs. Anheuser Busch Inbev
The idea behind ATT Inc and BELLUS Health 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.
BELLUS Health vs. Northwest Healthcare Properties
BELLUS Health vs. Anheuser Busch Inbev
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go