Correlation Between Atinum Investment and Samwha Electronics
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Samwha Electronics 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 Samwha Electronics 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 Samwha Electronics Co, you can compare the effects of market volatilities on Atinum Investment and Samwha Electronics 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 Samwha Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Samwha Electronics.
Diversification Opportunities for Atinum Investment and Samwha Electronics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and Samwha is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Samwha Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samwha Electronics 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 Samwha Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samwha Electronics has no effect on the direction of Atinum Investment i.e., Atinum Investment and Samwha Electronics go up and down completely randomly.
Pair Corralation between Atinum Investment and Samwha Electronics
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.51 times more return on investment than Samwha Electronics. However, Atinum Investment Co is 1.95 times less risky than Samwha Electronics. It trades about -0.04 of its potential returns per unit of risk. Samwha Electronics Co is currently generating about -0.33 per unit of risk. If you would invest 216,500 in Atinum Investment Co on November 18, 2024 and sell it today you would lose (2,000) from holding Atinum Investment Co or give up 0.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atinum Investment Co vs. Samwha Electronics Co
Performance |
Timeline |
Atinum Investment |
Samwha Electronics |
Atinum Investment and Samwha Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atinum Investment and Samwha Electronics
The main advantage of trading using opposite Atinum Investment and Samwha Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Samwha Electronics 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 Samwha Electronics will offset losses from the drop in Samwha Electronics' long position.Atinum Investment vs. Nice Information Telecommunication | Atinum Investment vs. PI Advanced Materials | Atinum Investment vs. Lake Materials Co | Atinum Investment vs. LAKE MATERIALS LTD |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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