Correlation Between Daelim Trading and ATON
Can any of the company-specific risk be diversified away by investing in both Daelim Trading 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 Daelim Trading and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and ATON Inc, you can compare the effects of market volatilities on Daelim Trading 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 Daelim Trading with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and ATON.
Diversification Opportunities for Daelim Trading and ATON
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daelim and ATON is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and Daelim Trading 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 Daelim Trading Co 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 Daelim Trading i.e., Daelim Trading and ATON go up and down completely randomly.
Pair Corralation between Daelim Trading and ATON
Assuming the 90 days trading horizon Daelim Trading is expected to generate 5.98 times less return on investment than ATON. But when comparing it to its historical volatility, Daelim Trading Co is 2.79 times less risky than ATON. It trades about 0.07 of its potential returns per unit of risk. ATON Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 418,000 in ATON Inc on September 1, 2024 and sell it today you would earn a total of 103,000 from holding ATON Inc or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Daelim Trading Co vs. ATON Inc
Performance |
| Timeline |
| Daelim Trading |
| ATON Inc |
Daelim Trading and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and ATON
The main advantage of trading using opposite Daelim Trading and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading 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.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
| ATON vs. Devsisters corporation | ATON vs. Konan Technology | ATON vs. Nice Information Telecommunication | ATON vs. InfoBank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |