Correlation Between ATN International and IDT
Can any of the company-specific risk be diversified away by investing in both ATN International and IDT 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 IDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and IDT Corporation, you can compare the effects of market volatilities on ATN International and IDT 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 IDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and IDT.
Diversification Opportunities for ATN International and IDT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATN and IDT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and IDT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDT Corporation 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 IDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDT Corporation has no effect on the direction of ATN International i.e., ATN International and IDT go up and down completely randomly.
Pair Corralation between ATN International and IDT
Given the investment horizon of 90 days ATN International is expected to under-perform the IDT. In addition to that, ATN International is 2.03 times more volatile than IDT Corporation. It trades about -0.13 of its total potential returns per unit of risk. IDT Corporation is currently generating about -0.03 per unit of volatility. If you would invest 4,752 in IDT Corporation on November 1, 2024 and sell it today you would lose (41.00) from holding IDT Corporation or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. IDT Corp.
Performance |
| Timeline |
| ATN International |
| IDT Corporation |
ATN International and IDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and IDT
The main advantage of trading using opposite ATN International and IDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, IDT 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 IDT will offset losses from the drop in IDT'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 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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