Correlation Between Shenandoah Telecommunicatio and ATN International
Can any of the company-specific risk be diversified away by investing in both Shenandoah Telecommunicatio and ATN International 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 Shenandoah Telecommunicatio and ATN International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenandoah Telecommunications Co and ATN International, you can compare the effects of market volatilities on Shenandoah Telecommunicatio and ATN International 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 Shenandoah Telecommunicatio with a short position of ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenandoah Telecommunicatio and ATN International.
Diversification Opportunities for Shenandoah Telecommunicatio and ATN International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenandoah and ATN is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and Shenandoah Telecommunicatio 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 Shenandoah Telecommunications Co are associated (or correlated) with ATN International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN International has no effect on the direction of Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and ATN International go up and down completely randomly.
Pair Corralation between Shenandoah Telecommunicatio and ATN International
Given the investment horizon of 90 days Shenandoah Telecommunications Co is expected to under-perform the ATN International. But the stock apears to be less risky and, when comparing its historical volatility, Shenandoah Telecommunications Co is 1.22 times less risky than ATN International. The stock trades about -0.31 of its potential returns per unit of risk. The ATN International is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,654 in ATN International on November 3, 2024 and sell it today you would lose (99.00) from holding ATN International or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenandoah Telecommunications vs. ATN International
Performance |
| Timeline |
| Shenandoah Telecommunicatio |
| ATN International |
Shenandoah Telecommunicatio and ATN International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenandoah Telecommunicatio and ATN International
The main advantage of trading using opposite Shenandoah Telecommunicatio and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenandoah Telecommunicatio position performs unexpectedly, ATN International 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 ATN International will offset losses from the drop in ATN International's long position.| Shenandoah Telecommunicatio vs. Anterix | Shenandoah Telecommunicatio vs. Liberty Broadband Corp | Shenandoah Telecommunicatio vs. Ooma Inc | Shenandoah Telecommunicatio vs. IDT Corporation |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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