Correlation Between Atinum Investment and Samick Musical
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Samick Musical 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 Samick Musical 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 Samick Musical Instruments, you can compare the effects of market volatilities on Atinum Investment and Samick Musical 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 Samick Musical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Samick Musical.
Diversification Opportunities for Atinum Investment and Samick Musical
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atinum and Samick is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Samick Musical Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samick Musical Instr 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 Samick Musical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samick Musical Instr has no effect on the direction of Atinum Investment i.e., Atinum Investment and Samick Musical go up and down completely randomly.
Pair Corralation between Atinum Investment and Samick Musical
Assuming the 90 days trading horizon Atinum Investment is expected to generate 2.92 times less return on investment than Samick Musical. In addition to that, Atinum Investment is 2.39 times more volatile than Samick Musical Instruments. It trades about 0.0 of its total potential returns per unit of risk. Samick Musical Instruments is currently generating about 0.03 per unit of volatility. If you would invest 102,110 in Samick Musical Instruments on September 1, 2024 and sell it today you would earn a total of 8,390 from holding Samick Musical Instruments or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Samick Musical Instruments
Performance |
| Timeline |
| Atinum Investment |
| Samick Musical Instr |
Atinum Investment and Samick Musical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Samick Musical
The main advantage of trading using opposite Atinum Investment and Samick Musical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Samick Musical 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 Samick Musical will offset losses from the drop in Samick Musical's long position.The idea behind Atinum Investment Co and Samick Musical Instruments pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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