Correlation Between ATN International and Gogo
Can any of the company-specific risk be diversified away by investing in both ATN International and Gogo 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 Gogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Gogo Inc, you can compare the effects of market volatilities on ATN International and Gogo 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 Gogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Gogo.
Diversification Opportunities for ATN International and Gogo
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATN and Gogo is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Gogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogo Inc 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 Gogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogo Inc has no effect on the direction of ATN International i.e., ATN International and Gogo go up and down completely randomly.
Pair Corralation between ATN International and Gogo
Given the investment horizon of 90 days ATN International is expected to generate about the same return on investment as Gogo Inc. However, ATN International is 1.15 times more volatile than Gogo Inc. It trades about -0.02 of its potential returns per unit of risk. Gogo Inc is currently producing about -0.03 per unit of risk. If you would invest 1,532 in Gogo Inc on September 2, 2024 and sell it today you would lose (729.00) from holding Gogo Inc or give up 47.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. Gogo Inc
Performance |
| Timeline |
| ATN International |
| Gogo Inc |
ATN International and Gogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and Gogo
The main advantage of trading using opposite ATN International and Gogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Gogo 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 Gogo will offset losses from the drop in Gogo's long position.| ATN International vs. T Mobile | ATN International vs. Comcast Corp | ATN International vs. Lumen Technologies | ATN International vs. Charter Communications |
| Gogo vs. Digital Ally | Gogo vs. Kandi Technologies Group | Gogo vs. Yelp Inc | Gogo vs. National Beverage Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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