Correlation Between ATN International and Comcast Corp
Can any of the company-specific risk be diversified away by investing in both ATN International and Comcast Corp 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 ATN International and Comcast Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Comcast Corp, you can compare the effects of market volatilities on ATN International and Comcast Corp 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 ATN International with a short position of Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Comcast Corp.
Diversification Opportunities for ATN International and Comcast Corp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATN and Comcast is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp and ATN International 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 ATN International are associated (or correlated) with Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of ATN International i.e., ATN International and Comcast Corp go up and down completely randomly.
Pair Corralation between ATN International and Comcast Corp
Given the investment horizon of 90 days ATN International is expected to under-perform the Comcast Corp. In addition to that, ATN International is 2.48 times more volatile than Comcast Corp. It trades about -0.03 of its total potential returns per unit of risk. Comcast Corp is currently generating about 0.05 per unit of volatility. If you would invest 3,265 in Comcast Corp on August 28, 2024 and sell it today you would earn a total of 1,055 from holding Comcast Corp or generate 32.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. Comcast Corp
Performance |
| Timeline |
| ATN International |
| Comcast Corp |
ATN International and Comcast Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and Comcast Corp
The main advantage of trading using opposite ATN International and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Comcast Corp 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 Comcast Corp will offset losses from the drop in Comcast Corp's long position.| ATN International vs. KT Corporation | ATN International vs. SK Telecom Co | ATN International vs. Ooma Inc | ATN International vs. Liberty Broadband Srs |
| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
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 Stocks Directory module to find actively traded stocks across global markets.
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