Correlation Between Radius Global and ATN International

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

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

Diversification Opportunities for Radius Global and ATN International

-0.5

Correlation Coefficient

Radius Global  ATN International

Very good diversification

The 3 months correlation between Radius and ATN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Radius Global Infrastructure and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and Radius Global 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 Radius Global Infrastructure 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 Radius Global i.e., Radius Global and ATN International go up and down completely randomly.

Pair Corralation between Radius Global and ATN International

If you would invest  1,489  in Radius Global Infrastructure on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Radius Global Infrastructure or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Radius Global Infrastructure  vs.  ATN International

Radius Global Infras

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Radius Global Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Radius Global is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 Radius Global and ATN International

The main advantage of trading using opposite Radius Global and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radius Global 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 Radius Global Infrastructure 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.