Correlation Between ATT and ATN International

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

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

Diversification Opportunities for ATT and ATN International

0.81

Correlation Coefficient

ATT  ATN International

Very poor diversification

The 3 months correlation between ATT and ATN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and ATT 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 ATT Inc 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 ATT i.e., ATT and ATN International go up and down completely randomly.

Pair Corralation between ATT and ATN International

Considering the 90-day investment horizon ATT is expected to generate 2.19 times less return on investment than ATN International. But when comparing it to its historical volatility, ATT Inc is 3.59 times less risky than ATN International. It trades about 0.1 of its potential returns per unit of risk. ATN International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,585  in ATN International on May 4, 2025 and sell it today you would earn a total of  114.00  from holding ATN International or generate 7.19% return on investment over 90 days.

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

ATT Inc  vs.  ATN International

ATT Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, ATT is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with ATT and ATN International

The main advantage of trading using opposite ATT and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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 ATT Inc 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.