Correlation Between Atinum Investment and Samyung Trading
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Samyung Trading 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 Samyung Trading 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 Samyung Trading Co, you can compare the effects of market volatilities on Atinum Investment and Samyung Trading 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 Samyung Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Samyung Trading.
Diversification Opportunities for Atinum Investment and Samyung Trading
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atinum and Samyung is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Samyung Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyung Trading 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 Samyung Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyung Trading has no effect on the direction of Atinum Investment i.e., Atinum Investment and Samyung Trading go up and down completely randomly.
Pair Corralation between Atinum Investment and Samyung Trading
Assuming the 90 days trading horizon Atinum Investment is expected to generate 3.99 times less return on investment than Samyung Trading. In addition to that, Atinum Investment is 1.79 times more volatile than Samyung Trading Co. It trades about 0.06 of its total potential returns per unit of risk. Samyung Trading Co is currently generating about 0.42 per unit of volatility. If you would invest 1,265,000 in Samyung Trading Co on December 10, 2024 and sell it today you would earn a total of 82,000 from holding Samyung Trading Co or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Samyung Trading Co
Performance |
| Timeline |
| Atinum Investment |
| Samyung Trading |
Atinum Investment and Samyung Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Samyung Trading
The main advantage of trading using opposite Atinum Investment and Samyung Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Samyung Trading 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 Samyung Trading will offset losses from the drop in Samyung Trading's long position.| Atinum Investment vs. Kukdo Chemical Co | Atinum Investment vs. Aekyung Petrochemical Co | Atinum Investment vs. Dongnam Chemical Co | Atinum Investment vs. Hanwha Chemical Corp |
| Samyung Trading vs. INFINITT Healthcare Co | Samyung Trading vs. Bookook Steel | Samyung Trading vs. FOODWELL Co | Samyung Trading vs. Histeel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |