Correlation Between ATT and Chunghwa Telecom
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By analyzing existing cross correlation between ATT Inc and Chunghwa Telecom Co, you can compare the effects of market volatilities on ATT and Chunghwa Telecom 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 Chunghwa Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Chunghwa Telecom.
Diversification Opportunities for ATT and Chunghwa Telecom
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATT and Chunghwa is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Chunghwa Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chunghwa Telecom 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 Chunghwa Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chunghwa Telecom has no effect on the direction of ATT i.e., ATT and Chunghwa Telecom go up and down completely randomly.
Pair Corralation between ATT and Chunghwa Telecom
Assuming the 90 days trading horizon ATT Inc is expected to under-perform the Chunghwa Telecom. In addition to that, ATT is 1.78 times more volatile than Chunghwa Telecom Co. It trades about -0.11 of its total potential returns per unit of risk. Chunghwa Telecom Co is currently generating about -0.08 per unit of volatility. If you would invest 3,760 in Chunghwa Telecom Co on August 27, 2025 and sell it today you would lose (160.00) from holding Chunghwa Telecom Co or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Chunghwa Telecom Co
Performance |
| Timeline |
| ATT Inc |
| Chunghwa Telecom |
ATT and Chunghwa Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Chunghwa Telecom
The main advantage of trading using opposite ATT and Chunghwa Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Chunghwa Telecom 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 Chunghwa Telecom will offset losses from the drop in Chunghwa Telecom's long position.| ATT vs. CPU SOFTWAREHOUSE | ATT vs. DIVERSIFIED ROYALTY | ATT vs. UPDATE SOFTWARE | ATT vs. Take Two Interactive Software |
| Chunghwa Telecom vs. SUN ART RETAIL | Chunghwa Telecom vs. Collins Foods Limited | Chunghwa Telecom vs. SENECA FOODS A | Chunghwa Telecom vs. ASSOC BR FOODS |
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 the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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