Correlation Between Atinum Investment and Hanwha Aerospace
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Hanwha Aerospace 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 Aerospace 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 Aerospace Co, you can compare the effects of market volatilities on Atinum Investment and Hanwha Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Hanwha Aerospace.
Diversification Opportunities for Atinum Investment and Hanwha Aerospace
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atinum and Hanwha is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Hanwha Aerospace Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Aerospace 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Aerospace has no effect on the direction of Atinum Investment i.e., Atinum Investment and Hanwha Aerospace go up and down completely randomly.
Pair Corralation between Atinum Investment and Hanwha Aerospace
Assuming the 90 days trading horizon Atinum Investment is expected to generate 55.6 times less return on investment than Hanwha Aerospace. But when comparing it to its historical volatility, Atinum Investment Co is 1.28 times less risky than Hanwha Aerospace. It trades about 0.0 of its potential returns per unit of risk. Hanwha Aerospace Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,805,265 in Hanwha Aerospace Co on September 4, 2024 and sell it today you would earn a total of 25,294,735 from holding Hanwha Aerospace Co or generate 371.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Hanwha Aerospace Co
Performance |
| Timeline |
| Atinum Investment |
| Hanwha Aerospace |
Atinum Investment and Hanwha Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Hanwha Aerospace
The main advantage of trading using opposite Atinum Investment and Hanwha Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Hanwha Aerospace 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 Aerospace will offset losses from the drop in Hanwha Aerospace's long position.| Atinum Investment vs. Hana Financial | Atinum Investment vs. Samsung Life Insurance | Atinum Investment vs. Handok Clean Tech | Atinum Investment vs. Jeju Bank |
| Hanwha Aerospace vs. Sam Yang Foods | Hanwha Aerospace vs. Green Cross Medical | Hanwha Aerospace vs. Shinsegae Food | Hanwha Aerospace vs. ITM Semiconductor Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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