Correlation Between ATT and Mid Cap

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

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

Diversification Opportunities for ATT and Mid Cap

0.0

Correlation Coefficient

ATT  Mid Cap

Pay attention - limited upside

The 3 months correlation between ATT and Mid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Growth 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Growth has no effect on the direction of ATT i.e., ATT and Mid Cap go up and down completely randomly.

Pair Corralation between ATT and Mid Cap

Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the Mid Cap. In addition to that, ATT is 1.39 times more volatile than Mid Cap Growth. It trades about -0.11 of its total potential returns per unit of risk. Mid Cap Growth is currently generating about -0.03 per unit of volatility. If you would invest  4,553  in Mid Cap Growth on August 26, 2025 and sell it today you would lose (93.00) from holding Mid Cap Growth or give up 2.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ATT Inc  vs.  Mid Cap Growth

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 conflicting 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.

Mid Cap Growth

Risk-Adjusted Performance

Weakest

Over the last 90 days Mid Cap Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Mid Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ATT and Mid Cap

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

The idea behind ATT Inc and Mid Cap Growth 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.