Correlation Between ATN International and KT
Can any of the company-specific risk be diversified away by investing in both ATN International and KT 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 KT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and KT Corporation, you can compare the effects of market volatilities on ATN International and KT 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 KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and KT.
Diversification Opportunities for ATN International and KT
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATN and KT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT 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 KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of ATN International i.e., ATN International and KT go up and down completely randomly.
Pair Corralation between ATN International and KT
Given the investment horizon of 90 days ATN International is expected to under-perform the KT. In addition to that, ATN International is 2.42 times more volatile than KT Corporation. It trades about -0.04 of its total potential returns per unit of risk. KT Corporation is currently generating about 0.06 per unit of volatility. If you would invest 1,216 in KT Corporation on November 1, 2024 and sell it today you would earn a total of 556.00 from holding KT Corporation or generate 45.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ATN International vs. KT Corp.
Performance |
| Timeline |
| ATN International |
| KT Corporation |
ATN International and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and KT
The main advantage of trading using opposite ATN International and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, KT 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 KT will offset losses from the drop in KT'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 |
| KT vs. PLDT Inc ADR | KT vs. Telefonica Brasil SA | KT vs. TIM Participacoes SA | KT 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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