Correlation Between Atinum Investment and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Daelim 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 Daelim 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 Daelim Trading Co, you can compare the effects of market volatilities on Atinum Investment and Daelim 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 Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Daelim Trading.
Diversification Opportunities for Atinum Investment and Daelim Trading
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and Daelim is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim 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 Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Atinum Investment i.e., Atinum Investment and Daelim Trading go up and down completely randomly.
Pair Corralation between Atinum Investment and Daelim Trading
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 1.29 times more return on investment than Daelim Trading. However, Atinum Investment is 1.29 times more volatile than Daelim Trading Co. It trades about 0.0 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.03 per unit of risk. If you would invest 272,477 in Atinum Investment Co on October 24, 2024 and sell it today you would lose (58,977) from holding Atinum Investment Co or give up 21.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Atinum Investment Co vs. Daelim Trading Co
Performance |
| Timeline |
| Atinum Investment |
| Daelim Trading |
Atinum Investment and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Daelim Trading
The main advantage of trading using opposite Atinum Investment and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Daelim 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Atinum Investment vs. Formetal Co | Atinum Investment vs. Shinsegae Food | Atinum Investment vs. Foodnamoo | Atinum Investment vs. Daiyang Metal Co |
| Daelim Trading vs. TS Investment Corp | Daelim Trading vs. Atinum Investment Co | Daelim Trading vs. Wonil Special Steel | Daelim Trading vs. KTB Investment Securities |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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