Correlation Between VEON and ATT

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

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

Diversification Opportunities for VEON and ATT

-0.37

Correlation Coefficient

VEON  ATT

Very good diversification

The 3 months correlation between VEON and ATT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding VEON and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc and VEON 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 VEON are associated (or correlated) with ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of VEON i.e., VEON and ATT go up and down completely randomly.

Pair Corralation between VEON and ATT

Given the investment horizon of 90 days VEON is expected to generate 3.72 times more return on investment than ATT. However, VEON is 3.72 times more volatile than ATT Inc. It trades about 0.07 of its potential returns per unit of risk. ATT Inc is currently generating about 0.03 per unit of risk. If you would invest  4,476  in VEON on May 5, 2025 and sell it today you would earn a total of  579.00  from holding VEON or generate 12.94% return on investment over 90 days.

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

VEON  vs.  ATT Inc

VEON

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in VEON are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, VEON displayed solid returns over the last few months and may actually be approaching a breakup point.

ATT Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATT Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ATT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with VEON and ATT

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

The idea behind VEON and ATT Inc 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.