Correlation Between ATN Holdings and Bank of the
Can any of the company-specific risk be diversified away by investing in both ATN Holdings and Bank of the 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 Holdings and Bank of the into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN Holdings and Bank of the, you can compare the effects of market volatilities on ATN Holdings and Bank of the 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 Holdings with a short position of Bank of the. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN Holdings and Bank of the.
Diversification Opportunities for ATN Holdings and Bank of the
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ATN and Bank is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ATN Holdings and Bank of the in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of the and ATN Holdings 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 Holdings are associated (or correlated) with Bank of the. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of the has no effect on the direction of ATN Holdings i.e., ATN Holdings and Bank of the go up and down completely randomly.
Pair Corralation between ATN Holdings and Bank of the
Assuming the 90 days trading horizon ATN Holdings is expected to generate 2.37 times less return on investment than Bank of the. But when comparing it to its historical volatility, ATN Holdings is 1.16 times less risky than Bank of the. It trades about 0.05 of its potential returns per unit of risk. Bank of the is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,200 in Bank of the on December 29, 2024 and sell it today you would earn a total of 1,260 from holding Bank of the or generate 10.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
ATN Holdings vs. Bank of the
Performance |
Timeline |
ATN Holdings |
Bank of the |
ATN Holdings and Bank of the Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATN Holdings and Bank of the
The main advantage of trading using opposite ATN Holdings and Bank of the positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN Holdings position performs unexpectedly, Bank of the 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 Bank of the will offset losses from the drop in Bank of the's long position.ATN Holdings vs. Metro Retail Stores | ATN Holdings vs. Philippine Savings Bank | ATN Holdings vs. Top Frontier Investment | ATN Holdings vs. Integrated Micro Electronics |
Bank of the vs. Rizal Commercial Banking | Bank of the vs. Union Bank of | Bank of the vs. Manulife Financial Corp | Bank of the vs. COL Financial Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |