Correlation Between Semyung Electric and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Semyung Electric 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 Semyung Electric and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semyung Electric Machinery and Atinum Investment Co, you can compare the effects of market volatilities on Semyung Electric 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 Semyung Electric with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semyung Electric and Atinum Investment.
Diversification Opportunities for Semyung Electric and Atinum Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Semyung and Atinum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Semyung Electric Machinery and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Semyung Electric 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 Semyung Electric Machinery 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 Semyung Electric i.e., Semyung Electric and Atinum Investment go up and down completely randomly.
Pair Corralation between Semyung Electric and Atinum Investment
Assuming the 90 days trading horizon Semyung Electric Machinery is expected to generate 2.51 times more return on investment than Atinum Investment. However, Semyung Electric is 2.51 times more volatile than Atinum Investment Co. It trades about -0.01 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.06 per unit of risk. If you would invest 588,000 in Semyung Electric Machinery on September 3, 2024 and sell it today you would lose (140,500) from holding Semyung Electric Machinery or give up 23.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semyung Electric Machinery vs. Atinum Investment Co
Performance |
| Timeline |
| Semyung Electric Mac |
| Atinum Investment |
Semyung Electric and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semyung Electric and Atinum Investment
The main advantage of trading using opposite Semyung Electric and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semyung Electric 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.| Semyung Electric vs. Dawonsys CoLtd | Semyung Electric vs. Daebo Magnetic CoLtd | Semyung Electric vs. Vitzro Tech Co | Semyung Electric vs. Busan Industrial Co |
| Atinum Investment vs. Dongjin Semichem Co | Atinum Investment vs. AhnLab Inc | Atinum Investment vs. Posco ICT | Atinum Investment vs. CJ ENM |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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