Correlation Between Grab Holdings and ATN International

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

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

Diversification Opportunities for Grab Holdings and ATN International

-0.87

Correlation Coefficient

Grab Holdings  ATN International

Pay attention - limited upside

The 3 months correlation between Grab and ATN is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Grab Holdings and ATN International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN International and Grab Holdings 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 Grab Holdings 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 Grab Holdings i.e., Grab Holdings and ATN International go up and down completely randomly.

Pair Corralation between Grab Holdings and ATN International

Given the investment horizon of 90 days Grab Holdings is expected to generate 0.72 times more return on investment than ATN International. However, Grab Holdings is 1.39 times less risky than ATN International. It trades about 0.04 of its potential returns per unit of risk. ATN International is currently generating about -0.04 per unit of risk. If you would invest  346.00  in Grab Holdings on September 23, 2024 and sell it today you would earn a total of  144.00  from holding Grab Holdings or generate 41.62% return on investment over 90 days.

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

Grab Holdings  vs.  ATN International

Grab Holdings

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grab Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Grab Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Grab Holdings and ATN International

The main advantage of trading using opposite Grab Holdings and ATN International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grab Holdings 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 Grab Holdings 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.

Check out your portfolio center.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.