Correlation Between ATN International and VEON
Can any of the company-specific risk be diversified away by investing in both ATN International and VEON 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 VEON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and VEON, you can compare the effects of market volatilities on ATN International and VEON 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 VEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and VEON.
Diversification Opportunities for ATN International and VEON
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATN and VEON is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and VEON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEON 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 VEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEON has no effect on the direction of ATN International i.e., ATN International and VEON go up and down completely randomly.
Pair Corralation between ATN International and VEON
Given the investment horizon of 90 days ATN International is expected to under-perform the VEON. But the stock apears to be less risky and, when comparing its historical volatility, ATN International is 1.29 times less risky than VEON. The stock trades about -0.24 of its potential returns per unit of risk. The VEON is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,363 in VEON on September 14, 2024 and sell it today you would earn a total of 337.00 from holding VEON or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. VEON
Performance |
| Timeline |
| ATN International |
| VEON |
ATN International and VEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and VEON
The main advantage of trading using opposite ATN International and VEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, VEON 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 VEON will offset losses from the drop in VEON'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 |
| VEON vs. Telecom Argentina SA | VEON vs. Telkom Indonesia Tbk | VEON vs. PLDT Inc ADR | VEON vs. Telefonica Brasil SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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