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

-0.67

Correlation Coefficient

ATN International  VEON

Excellent diversification

The 3 months correlation between ATN and VEON is -0.67. 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. In addition to that, ATN International is 1.51 times more volatile than VEON. It trades about -0.08 of its total potential returns per unit of risk. VEON is currently generating about 0.18 per unit of volatility. If you would invest  2,720  in VEON on December 4, 2024 and sell it today you would earn a total of  1,756  from holding VEON or generate 64.56% 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

ATN International

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATN International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

VEON

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VEON are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, VEON displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind ATN International and VEON pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.