Correlation Between Iljin Display and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Iljin Display 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 Iljin Display and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin Display and Atinum Investment Co, you can compare the effects of market volatilities on Iljin Display 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 Iljin Display with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin Display and Atinum Investment.
Diversification Opportunities for Iljin Display and Atinum Investment
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iljin and Atinum is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Iljin Display and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Iljin Display 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 Iljin Display 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 Iljin Display i.e., Iljin Display and Atinum Investment go up and down completely randomly.
Pair Corralation between Iljin Display and Atinum Investment
Assuming the 90 days trading horizon Iljin Display is expected to generate 2.68 times less return on investment than Atinum Investment. In addition to that, Iljin Display is 1.51 times more volatile than Atinum Investment Co. It trades about 0.08 of its total potential returns per unit of risk. Atinum Investment Co is currently generating about 0.31 per unit of volatility. If you would invest 209,000 in Atinum Investment Co on November 27, 2024 and sell it today you would earn a total of 12,000 from holding Atinum Investment Co or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iljin Display vs. Atinum Investment Co
Performance |
| Timeline |
| Iljin Display |
| Atinum Investment |
Iljin Display and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin Display and Atinum Investment
The main advantage of trading using opposite Iljin Display and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin Display 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.| Iljin Display vs. Polaris Office Corp | Iljin Display vs. Korean Air Lines | Iljin Display vs. Chorokbaem Healthcare Co | Iljin Display vs. Aprogen Healthcare Games |
| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Seoul Food Industrial | Atinum Investment vs. ADTechnology CoLtd | Atinum Investment vs. Spolytech Co |
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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