Correlation Between Atinum Investment and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on Atinum Investment and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Hanwha InvestmentSecuri.
Diversification Opportunities for Atinum Investment and Hanwha InvestmentSecuri
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and Hanwha is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of Atinum Investment i.e., Atinum Investment and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between Atinum Investment and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon Atinum Investment is expected to generate 23.13 times less return on investment than Hanwha InvestmentSecuri. But when comparing it to its historical volatility, Atinum Investment Co is 2.08 times less risky than Hanwha InvestmentSecuri. It trades about 0.0 of its potential returns per unit of risk. Hanwha InvestmentSecurities Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 511,000 in Hanwha InvestmentSecurities Co on September 1, 2024 and sell it today you would earn a total of 201,000 from holding Hanwha InvestmentSecurities Co or generate 39.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| Atinum Investment |
| Hanwha InvestmentSecuri |
Atinum Investment and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Hanwha InvestmentSecuri
The main advantage of trading using opposite Atinum Investment and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Hanwha InvestmentSecuri 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 Hanwha InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.The idea behind Atinum Investment Co and Hanwha InvestmentSecurities Co 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.
| Hanwha InvestmentSecuri vs. Solution Advanced Technology | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind | Hanwha InvestmentSecuri vs. Mirae Asset Daewoo |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |