Correlation Between ATN International and KORE Group
Can any of the company-specific risk be diversified away by investing in both ATN International and KORE Group 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 KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and KORE Group Holdings, you can compare the effects of market volatilities on ATN International and KORE Group 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 KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and KORE Group.
Diversification Opportunities for ATN International and KORE Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATN and KORE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings 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 KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of ATN International i.e., ATN International and KORE Group go up and down completely randomly.
Pair Corralation between ATN International and KORE Group
Given the investment horizon of 90 days ATN International is expected to generate 0.69 times more return on investment than KORE Group. However, ATN International is 1.45 times less risky than KORE Group. It trades about -0.02 of its potential returns per unit of risk. KORE Group Holdings is currently generating about -0.13 per unit of risk. If you would invest 2,055 in ATN International on September 2, 2024 and sell it today you would lose (77.00) from holding ATN International or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. KORE Group Holdings
Performance |
| Timeline |
| ATN International |
| KORE Group Holdings |
ATN International and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and KORE Group
The main advantage of trading using opposite ATN International and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, KORE Group 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 KORE Group will offset losses from the drop in KORE Group's long position.| ATN International vs. T Mobile | ATN International vs. Comcast Corp | ATN International vs. Lumen Technologies | ATN International vs. Charter Communications |
| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |