Correlation Between ATN International and NuRAN Wireless

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

By analyzing existing cross correlation between ATN International and NuRAN Wireless, you can compare the effects of market volatilities on ATN International and NuRAN Wireless 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 NuRAN Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and NuRAN Wireless.

Diversification Opportunities for ATN International and NuRAN Wireless

-0.69

Correlation Coefficient

ATN International  NuRAN Wireless

Excellent diversification

The 3 months correlation between ATN and NuRAN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and NuRAN Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuRAN Wireless 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 NuRAN Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuRAN Wireless has no effect on the direction of ATN International i.e., ATN International and NuRAN Wireless go up and down completely randomly.

Pair Corralation between ATN International and NuRAN Wireless

Given the investment horizon of 90 days ATN International is expected to generate 0.53 times more return on investment than NuRAN Wireless. However, ATN International is 1.89 times less risky than NuRAN Wireless. It trades about 0.06 of its potential returns per unit of risk. NuRAN Wireless is currently generating about -0.15 per unit of risk. If you would invest  1,530  in ATN International on May 8, 2025 and sell it today you would earn a total of  114.00  from holding ATN International or generate 7.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

ATN International  vs.  NuRAN Wireless

ATN International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATN International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, ATN International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

NuRAN Wireless

Risk-Adjusted Performance

Weakest

Over the last 90 days NuRAN Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ATN International and NuRAN Wireless

The main advantage of trading using opposite ATN International and NuRAN Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International position performs unexpectedly, NuRAN Wireless 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 NuRAN Wireless will offset losses from the drop in NuRAN Wireless' long position.

The idea behind ATN International and NuRAN Wireless 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.