Correlation Between Atinum Investment and SBI Investment
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and SBI Investment 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 SBI Investment 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 SBI Investment KOREA, you can compare the effects of market volatilities on Atinum Investment and SBI Investment 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 SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and SBI Investment.
Diversification Opportunities for Atinum Investment and SBI Investment
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and SBI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA 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 SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of Atinum Investment i.e., Atinum Investment and SBI Investment go up and down completely randomly.
Pair Corralation between Atinum Investment and SBI Investment
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the SBI Investment. In addition to that, Atinum Investment is 1.06 times more volatile than SBI Investment KOREA. It trades about -0.1 of its total potential returns per unit of risk. SBI Investment KOREA is currently generating about 0.1 per unit of volatility. If you would invest 68,900 in SBI Investment KOREA on September 4, 2024 and sell it today you would earn a total of 3,600 from holding SBI Investment KOREA or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. SBI Investment KOREA
Performance |
| Timeline |
| Atinum Investment |
| SBI Investment KOREA |
Atinum Investment and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and SBI Investment
The main advantage of trading using opposite Atinum Investment and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment'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 |
| SBI Investment vs. Foodnamoo | SBI Investment vs. CJ Seafood Corp | SBI Investment vs. Hyundai Green Food | SBI Investment vs. Playgram 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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