Correlation Between ATT and MMTEC
Can any of the company-specific risk be diversified away by investing in both ATT and MMTEC 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 MMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and MMTEC Inc, you can compare the effects of market volatilities on ATT and MMTEC 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 MMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and MMTEC.
Diversification Opportunities for ATT and MMTEC
Modest diversification
The 3 months correlation between ATT and MMTEC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc 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 MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of ATT i.e., ATT and MMTEC go up and down completely randomly.
Pair Corralation between ATT and MMTEC
Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the MMTEC. But the stock apears to be less risky and, when comparing its historical volatility, ATT Inc is 5.46 times less risky than MMTEC. The stock trades about -0.04 of its potential returns per unit of risk. The MMTEC Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 95.00 in MMTEC Inc on July 15, 2025 and sell it today you would lose (10.00) from holding MMTEC Inc or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. MMTEC Inc
Performance |
| Timeline |
| ATT Inc |
| MMTEC Inc |
ATT and MMTEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and MMTEC
The main advantage of trading using opposite ATT and MMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, MMTEC 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 MMTEC will offset losses from the drop in MMTEC's long position.The idea behind ATT Inc and MMTEC 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.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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