Correlation Between ATT and Shore Bancshares

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

Diversification Opportunities for ATT and Shore Bancshares

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between ATT and Shore is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Shore Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shore Bancshares 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 Shore Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shore Bancshares has no effect on the direction of ATT i.e., ATT and Shore Bancshares go up and down completely randomly.

Pair Corralation between ATT and Shore Bancshares

Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.3 times more return on investment than Shore Bancshares. However, ATT is 1.3 times more volatile than Shore Bancshares. It trades about 0.01 of its potential returns per unit of risk. Shore Bancshares is currently generating about 0.0 per unit of risk. If you would invest  1,800  in ATT Inc on May 10, 2022 and sell it today you would earn a total of  0.00  from holding ATT Inc or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ATT Inc  vs.  Shore Bancshares

 Performance (%) 
       Timeline  
ATT Inc 
ATT Performance
0 of 100
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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

ATT Price Channel

Shore Bancshares 
Shore Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Shore Bancshares are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental drivers, Shore Bancshares is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Shore Price Channel

ATT and Shore Bancshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and Shore Bancshares

The main advantage of trading using opposite ATT and Shore Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Shore Bancshares 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 Shore Bancshares will offset losses from the drop in Shore Bancshares' long position.
The idea behind ATT Inc and Shore Bancshares 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.

Shore Bancshares

Pair trading matchups for Shore Bancshares

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go