Correlation Between Tae Kyung and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Tae Kyung and Atinum Investment 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 Tae Kyung and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and Atinum Investment Co, you can compare the effects of market volatilities on Tae Kyung and Atinum Investment 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 Tae Kyung with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and Atinum Investment.
Diversification Opportunities for Tae Kyung and Atinum Investment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tae and Atinum is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung Chemical and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Tae Kyung 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 Tae Kyung Chemical are associated (or correlated) with Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Tae Kyung i.e., Tae Kyung and Atinum Investment go up and down completely randomly.
Pair Corralation between Tae Kyung and Atinum Investment
Assuming the 90 days trading horizon Tae Kyung Chemical is expected to generate 2.17 times more return on investment than Atinum Investment. However, Tae Kyung is 2.17 times more volatile than Atinum Investment Co. It trades about -0.03 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.61 per unit of risk. If you would invest 1,122,000 in Tae Kyung Chemical on November 7, 2024 and sell it today you would lose (15,000) from holding Tae Kyung Chemical or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tae Kyung Chemical vs. Atinum Investment Co
Performance |
| Timeline |
| Tae Kyung Chemical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Atinum Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tae Kyung and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and Atinum Investment
The main advantage of trading using opposite Tae Kyung and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| Tae Kyung vs. A Tech Solution Co | Tae Kyung vs. Hotel Shilla Co | Tae Kyung vs. Shinhan Inverse Copper | Tae Kyung vs. Orbitech Co |
| Atinum Investment vs. MediaZen | Atinum Investment vs. SKONEC Entertainment Co | Atinum Investment vs. Puloon Technology | Atinum Investment vs. Mobileleader CoLtd |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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