Correlation Between Atinum Investment and DB Financial
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and DB Financial 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 DB Financial 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 DB Financial Investment, you can compare the effects of market volatilities on Atinum Investment and DB Financial 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 DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and DB Financial.
Diversification Opportunities for Atinum Investment and DB Financial
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and 016610 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and DB Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Financial Investment 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 DB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Financial Investment has no effect on the direction of Atinum Investment i.e., Atinum Investment and DB Financial go up and down completely randomly.
Pair Corralation between Atinum Investment and DB Financial
Assuming the 90 days trading horizon Atinum Investment is expected to generate 2.7 times less return on investment than DB Financial. In addition to that, Atinum Investment is 1.61 times more volatile than DB Financial Investment. It trades about 0.01 of its total potential returns per unit of risk. DB Financial Investment is currently generating about 0.03 per unit of volatility. If you would invest 429,825 in DB Financial Investment on September 2, 2024 and sell it today you would earn a total of 86,175 from holding DB Financial Investment or generate 20.05% 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. DB Financial Investment
Performance |
| Timeline |
| Atinum Investment |
| DB Financial Investment |
Atinum Investment and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and DB Financial
The main advantage of trading using opposite Atinum Investment and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, DB Financial 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 DB Financial will offset losses from the drop in DB Financial's long position.| Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group |
| DB Financial vs. Samsung Electronics Co | DB Financial vs. Samsung Electronics Co | DB Financial vs. KB Financial Group | DB Financial vs. Shinhan Financial Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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