Correlation Between Atinum Investment and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Ssangyong Information 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 Ssangyong Information 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 Ssangyong Information Communication, you can compare the effects of market volatilities on Atinum Investment and Ssangyong Information 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 Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Ssangyong Information.
Diversification Opportunities for Atinum Investment and Ssangyong Information
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and Ssangyong is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information 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 Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Atinum Investment i.e., Atinum Investment and Ssangyong Information go up and down completely randomly.
Pair Corralation between Atinum Investment and Ssangyong Information
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Ssangyong Information. In addition to that, Atinum Investment is 2.34 times more volatile than Ssangyong Information Communication. It trades about -0.13 of its total potential returns per unit of risk. Ssangyong Information Communication is currently generating about 0.1 per unit of volatility. If you would invest 60,500 in Ssangyong Information Communication on September 1, 2024 and sell it today you would earn a total of 1,500 from holding Ssangyong Information Communication or generate 2.48% 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. Ssangyong Information Communic
Performance |
| Timeline |
| Atinum Investment |
| Ssangyong Information |
Atinum Investment and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Ssangyong Information
The main advantage of trading using opposite Atinum Investment and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.The idea behind Atinum Investment Co and Ssangyong Information Communication 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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