Correlation Between ATT and Power Integrations

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

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

Diversification Opportunities for ATT and Power Integrations

0.42

Correlation Coefficient

ATT  Power Integrations

Very weak diversification

The 3 months correlation between ATT and Power is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Power Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Integrations 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 Power Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Integrations has no effect on the direction of ATT i.e., ATT and Power Integrations go up and down completely randomly.

Pair Corralation between ATT and Power Integrations

Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.29 times more return on investment than Power Integrations. However, ATT Inc is 3.49 times less risky than Power Integrations. It trades about -0.15 of its potential returns per unit of risk. Power Integrations is currently generating about -0.05 per unit of risk. If you would invest  2,859  in ATT Inc on September 6, 2025 and sell it today you would lose (331.00) from holding ATT Inc or give up 11.58% of portfolio value over 90 days.

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

ATT Inc  vs.  Power Integrations

ATT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Power Integrations

Risk-Adjusted Performance

Weakest

Over the last 90 days Power Integrations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with ATT and Power Integrations

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

The idea behind ATT Inc and Power Integrations 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.