Correlation Between Dongwon Metal and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Dongwon Metal 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 Dongwon Metal and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwon Metal Co and Atinum Investment Co, you can compare the effects of market volatilities on Dongwon Metal 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 Dongwon Metal with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwon Metal and Atinum Investment.
Diversification Opportunities for Dongwon Metal and Atinum Investment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongwon and Atinum is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dongwon Metal Co and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Dongwon Metal 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 Dongwon Metal Co 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 Dongwon Metal i.e., Dongwon Metal and Atinum Investment go up and down completely randomly.
Pair Corralation between Dongwon Metal and Atinum Investment
Assuming the 90 days trading horizon Dongwon Metal Co is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, Dongwon Metal Co is 1.52 times less risky than Atinum Investment. The stock trades about -0.27 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 246,000 in Atinum Investment Co on August 29, 2024 and sell it today you would lose (6,500) from holding Atinum Investment Co or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongwon Metal Co vs. Atinum Investment Co
Performance |
| Timeline |
| Dongwon Metal |
| Atinum Investment |
Dongwon Metal and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwon Metal and Atinum Investment
The main advantage of trading using opposite Dongwon Metal and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwon Metal 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.| Dongwon Metal vs. ABOV Semiconductor Co | Dongwon Metal vs. DataSolution | Dongwon Metal vs. Ssangyong Information Communication | Dongwon Metal vs. Nable Communications |
| Atinum Investment vs. Cube Entertainment | Atinum Investment vs. Dreamus Company | Atinum Investment vs. LG Energy Solution | Atinum Investment vs. Dongwon System |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |