Correlation Between ATN International and Eshallgo

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Can any of the company-specific risk be diversified away by investing in both ATN International and Eshallgo 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 Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Eshallgo Class A, you can compare the effects of market volatilities on ATN International and Eshallgo 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 Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Eshallgo.

Diversification Opportunities for ATN International and Eshallgo

-0.87
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ATN and Eshallgo is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of ATN International i.e., ATN International and Eshallgo go up and down completely randomly.

Pair Corralation between ATN International and Eshallgo

Given the investment horizon of 90 days ATN International is expected to under-perform the Eshallgo. But the stock apears to be less risky and, when comparing its historical volatility, ATN International is 1.09 times less risky than Eshallgo. The stock trades about -0.23 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  211.00  in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of  188.00  from holding Eshallgo Class A or generate 89.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ATN International  vs.  Eshallgo Class A

 Performance 
       Timeline  
ATN International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ATN International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Eshallgo Class A 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Eshallgo Class A are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Eshallgo displayed solid returns over the last few months and may actually be approaching a breakup point.

ATN International and Eshallgo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATN International and Eshallgo

The main advantage of trading using opposite ATN International and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.
The idea behind ATN International and Eshallgo Class A 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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