Correlation Between KORE Group and ATN International

Can any of the company-specific risk be diversified away by investing in both KORE Group 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 KORE Group and ATN International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KORE Group Holdings and ATN International, you can compare the effects of market volatilities on KORE Group 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 KORE Group with a short position of ATN International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and ATN International.

Diversification Opportunities for KORE Group and ATN International

0.52

Correlation Coefficient

KORE Group  ATN International

Very weak diversification

The 3 months correlation between KORE and ATN is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and KORE Group 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 KORE Group Holdings 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 KORE Group i.e., KORE Group and ATN International go up and down completely randomly.

Pair Corralation between KORE Group and ATN International

Given the investment horizon of 90 days KORE Group Holdings is expected to under-perform the ATN International. In addition to that, KORE Group is 1.11 times more volatile than ATN International. It trades about -0.07 of its total potential returns per unit of risk. ATN International is currently generating about -0.07 per unit of volatility. If you would invest  2,671  in ATN International on August 31, 2024 and sell it today you would lose (653.00) from holding ATN International or give up 24.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

KORE Group Holdings  vs.  ATN International

KORE Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KORE Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ATN International

Risk-Adjusted Performance

0 of 100

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 December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with KORE Group and ATN International

The main advantage of trading using opposite KORE Group and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group 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.

The idea behind KORE Group Holdings and ATN International 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.