Correlation Between ATN International and U S Cellular

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

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

Diversification Opportunities for ATN International and U S Cellular

0.78

Correlation Coefficient

ATN International  U S Cellular

Poor diversification

The 3 months correlation between ATN and USM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular 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 U S Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of ATN International i.e., ATN International and U S Cellular go up and down completely randomly.

Pair Corralation between ATN International and U S Cellular

Given the investment horizon of 90 days ATN International is expected to generate 2.78 times less return on investment than U S Cellular. In addition to that, ATN International is 1.15 times more volatile than United States Cellular. It trades about 0.06 of its total potential returns per unit of risk. United States Cellular is currently generating about 0.19 per unit of volatility. If you would invest  5,833  in United States Cellular on May 4, 2025 and sell it today you would earn a total of  1,517  from holding United States Cellular or generate 26.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

ATN International  vs.  United States Cellular

ATN International

Risk-Adjusted Performance

Insignificant

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.

United States Cellular

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in United States Cellular are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, U S Cellular displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATN International and U S Cellular

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

The idea behind ATN International and United States Cellular 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.