Correlation Between Atinum Investment and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Golden Bridge 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 Atinum Investment and Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atinum Investment Co and Golden Bridge Investment, you can compare the effects of market volatilities on Atinum Investment and Golden Bridge 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 Atinum Investment with a short position of Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Golden Bridge.
Diversification Opportunities for Atinum Investment and Golden Bridge
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atinum and Golden is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Golden Bridge Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bridge Investment and Atinum Investment 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 Atinum Investment Co are associated (or correlated) with Golden Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bridge Investment has no effect on the direction of Atinum Investment i.e., Atinum Investment and Golden Bridge go up and down completely randomly.
Pair Corralation between Atinum Investment and Golden Bridge
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 1.57 times more return on investment than Golden Bridge. However, Atinum Investment is 1.57 times more volatile than Golden Bridge Investment. It trades about -0.06 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.21 per unit of risk. If you would invest 295,500 in Atinum Investment Co on August 25, 2024 and sell it today you would lose (57,500) from holding Atinum Investment Co or give up 19.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Golden Bridge Investment
Performance |
| Timeline |
| Atinum Investment |
| Golden Bridge Investment |
Atinum Investment and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Golden Bridge
The main advantage of trading using opposite Atinum Investment and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Golden Bridge 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 Golden Bridge will offset losses from the drop in Golden Bridge's long position.| Atinum Investment vs. Korea New Network | Atinum Investment vs. Dong A Eltek | Atinum Investment vs. Dreamus Company | Atinum Investment vs. SK Bioscience Co |
| Golden Bridge vs. Chin Yang Chemical | Golden Bridge vs. LG Electronics | Golden Bridge vs. SungMoon Electronics Co | Golden Bridge vs. Samwha Electronics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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