Correlation Between Samick Musical and ATON
Can any of the company-specific risk be diversified away by investing in both Samick Musical and ATON 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 Samick Musical and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samick Musical Instruments and ATON Inc, you can compare the effects of market volatilities on Samick Musical and ATON 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 Samick Musical with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and ATON.
Diversification Opportunities for Samick Musical and ATON
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samick and ATON is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and Samick Musical 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 Samick Musical Instruments are associated (or correlated) with ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Samick Musical i.e., Samick Musical and ATON go up and down completely randomly.
Pair Corralation between Samick Musical and ATON
Assuming the 90 days trading horizon Samick Musical is expected to generate 126.0 times less return on investment than ATON. But when comparing it to its historical volatility, Samick Musical Instruments is 10.46 times less risky than ATON. It trades about 0.02 of its potential returns per unit of risk. ATON Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 399,500 in ATON Inc on August 29, 2024 and sell it today you would earn a total of 172,500 from holding ATON Inc or generate 43.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. ATON Inc
Performance |
| Timeline |
| Samick Musical Instr |
| ATON Inc |
Samick Musical and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and ATON
The main advantage of trading using opposite Samick Musical and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| ATON vs. Daelim Trading Co | ATON vs. LB Investment | ATON vs. Samick Musical Instruments | ATON vs. Dongwon Metal Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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