Correlation Between ATN International and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both ATN International and Consolidated Communications 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 Consolidated Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Consolidated Communications, you can compare the effects of market volatilities on ATN International and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Consolidated Communications.
Diversification Opportunities for ATN International and Consolidated Communications
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATN and Consolidated is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Consolidated Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of ATN International i.e., ATN International and Consolidated Communications go up and down completely randomly.
Pair Corralation between ATN International and Consolidated Communications
If you would invest 472.00 in Consolidated Communications on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Consolidated Communications or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ATN International vs. Consolidated Communications
Performance |
| Timeline |
| ATN International |
| Consolidated Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
ATN International and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and Consolidated Communications
The main advantage of trading using opposite ATN International and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| ATN International vs. KT Corporation | ATN International vs. SK Telecom Co | ATN International vs. Ooma Inc | ATN International vs. Liberty Broadband Srs |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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