Correlation Between ATT and Oxbridge Acquisition

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

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

Diversification Opportunities for ATT and Oxbridge Acquisition

0.64

Correlation Coefficient

ATT  Oxbridge Acquisition

Poor diversification

The 3 months correlation between ATT and Oxbridge is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Oxbridge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Acquisition Corp 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 Oxbridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Acquisition Corp has no effect on the direction of ATT i.e., ATT and Oxbridge Acquisition go up and down completely randomly.

Pair Corralation between ATT and Oxbridge Acquisition

Taking into account the 90-day investment horizon ATT Inc is expected to generate 4.64 times more return on investment than Oxbridge Acquisition. However, ATT is 4.64 times more volatile than Oxbridge Acquisition Corp. It trades about 0.06 of its potential returns per unit of risk. Oxbridge Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest  1,629  in ATT Inc on September 17, 2024 and sell it today you would earn a total of  734.00  from holding ATT Inc or generate 45.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	28.83%
Values	Daily Returns

ATT Inc  vs.  Oxbridge Acquisition Corp

ATT Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ATT may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Oxbridge Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxbridge Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Oxbridge Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ATT and Oxbridge Acquisition

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

The idea behind ATT Inc and Oxbridge Acquisition Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.