Correlation Between ATN International and Telephone
Can any of the company-specific risk be diversified away by investing in both ATN International and Telephone 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 Telephone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and Telephone and Data, you can compare the effects of market volatilities on ATN International and Telephone 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 Telephone. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and Telephone.
Diversification Opportunities for ATN International and Telephone
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATN and Telephone is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and Telephone and Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telephone and Data 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 Telephone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telephone and Data has no effect on the direction of ATN International i.e., ATN International and Telephone go up and down completely randomly.
Pair Corralation between ATN International and Telephone
Given the investment horizon of 90 days ATN International is expected to under-perform the Telephone. In addition to that, ATN International is 1.82 times more volatile than Telephone and Data. It trades about -0.13 of its total potential returns per unit of risk. Telephone and Data is currently generating about 0.47 per unit of volatility. If you would invest 1,730 in Telephone and Data on November 1, 2024 and sell it today you would earn a total of 231.00 from holding Telephone and Data or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. Telephone and Data
Performance |
| Timeline |
| ATN International |
| Telephone and Data |
ATN International and Telephone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and Telephone
The main advantage of trading using opposite ATN International and Telephone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, Telephone 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 Telephone will offset losses from the drop in Telephone'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 |
| Telephone vs. Telephone and Data | Telephone vs. ATT Inc | Telephone vs. Liberty Broadband Corp | Telephone vs. SiriusPoint |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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