Correlation Between T Mobile and ATN International
Can any of the company-specific risk be diversified away by investing in both T Mobile 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 T Mobile and ATN International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Mobile and ATN International, you can compare the effects of market volatilities on T Mobile 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 T Mobile with a short position of ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Mobile and ATN International.
Diversification Opportunities for T Mobile and ATN International
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TMUS and ATN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding T Mobile and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and T Mobile 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 T Mobile 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 T Mobile i.e., T Mobile and ATN International go up and down completely randomly.
Pair Corralation between T Mobile and ATN International
Given the investment horizon of 90 days T Mobile is expected to under-perform the ATN International. But the stock apears to be less risky and, when comparing its historical volatility, T Mobile is 1.62 times less risky than ATN International. The stock trades about -0.12 of its potential returns per unit of risk. The ATN International is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,905 in ATN International on January 5, 2025 and sell it today you would lose (44.00) from holding ATN International or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Mobile vs. ATN International
Performance |
| Timeline |
| T Mobile |
| ATN International |
T Mobile and ATN International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Mobile and ATN International
The main advantage of trading using opposite T Mobile and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Mobile 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.| T Mobile vs. ATT Inc | T Mobile vs. Comcast Corp | T Mobile vs. Lumen Technologies | T Mobile vs. Verizon Communications |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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