Correlation Between ATT and IShares Global

Can any of the company-specific risk be diversified away by investing in both ATT and IShares Global 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 IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATT Inc and iShares Global Infrastructure, you can compare the effects of market volatilities on ATT and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and IShares Global.

Diversification Opportunities for ATT and IShares Global

0.47

Correlation Coefficient

ATT  IShares Global

Very weak diversification

The 3 months correlation between ATT and IShares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and iShares Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Infra 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Infra has no effect on the direction of ATT i.e., ATT and IShares Global go up and down completely randomly.

Pair Corralation between ATT and IShares Global

Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the IShares Global. In addition to that, ATT is 1.87 times more volatile than iShares Global Infrastructure. It trades about 0.0 of its total potential returns per unit of risk. iShares Global Infrastructure is currently generating about 0.15 per unit of volatility. If you would invest  5,664  in iShares Global Infrastructure on May 6, 2025 and sell it today you would earn a total of  340.00  from holding iShares Global Infrastructure or generate 6.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ATT Inc  vs.  iShares Global Infrastructure

ATT Inc

Risk-Adjusted Performance

Very Weak

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

iShares Global Infra

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Global Infrastructure are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, IShares Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ATT and IShares Global

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

The idea behind ATT Inc and iShares Global Infrastructure 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.