Correlation Between SAMRYOONG CoLtd and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both SAMRYOONG CoLtd 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 SAMRYOONG CoLtd and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMRYOONG CoLtd and Atinum Investment Co, you can compare the effects of market volatilities on SAMRYOONG CoLtd 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 SAMRYOONG CoLtd with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMRYOONG CoLtd and Atinum Investment.
Diversification Opportunities for SAMRYOONG CoLtd and Atinum Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAMRYOONG and Atinum is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SAMRYOONG CoLtd and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and SAMRYOONG CoLtd 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 SAMRYOONG CoLtd 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 SAMRYOONG CoLtd i.e., SAMRYOONG CoLtd and Atinum Investment go up and down completely randomly.
Pair Corralation between SAMRYOONG CoLtd and Atinum Investment
Assuming the 90 days trading horizon SAMRYOONG CoLtd is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, SAMRYOONG CoLtd is 1.55 times less risky than Atinum Investment. The stock trades about -0.05 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 258,649 in Atinum Investment Co on September 12, 2024 and sell it today you would lose (38,149) from holding Atinum Investment Co or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMRYOONG CoLtd vs. Atinum Investment Co
Performance |
| Timeline |
| SAMRYOONG CoLtd |
| Atinum Investment |
SAMRYOONG CoLtd and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMRYOONG CoLtd and Atinum Investment
The main advantage of trading using opposite SAMRYOONG CoLtd and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMRYOONG CoLtd 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.| SAMRYOONG CoLtd vs. SV Investment | SAMRYOONG CoLtd vs. DSC Investment | SAMRYOONG CoLtd vs. Korea Investment Holdings | SAMRYOONG CoLtd vs. KTB Investment Securities |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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