Correlation Between Atinum Investment and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Atinum Investment and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Iljin Display.
Diversification Opportunities for Atinum Investment and Iljin Display
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atinum and Iljin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Atinum Investment i.e., Atinum Investment and Iljin Display go up and down completely randomly.
Pair Corralation between Atinum Investment and Iljin Display
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.66 times more return on investment than Iljin Display. However, Atinum Investment Co is 1.51 times less risky than Iljin Display. It trades about 0.31 of its potential returns per unit of risk. Iljin Display is currently generating about 0.08 per unit of risk. If you would invest 209,000 in Atinum Investment Co on November 27, 2024 and sell it today you would earn a total of 12,000 from holding Atinum Investment Co or generate 5.74% 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. Iljin Display
Performance |
| Timeline |
| Atinum Investment |
| Iljin Display |
Atinum Investment and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Iljin Display
The main advantage of trading using opposite Atinum Investment and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Seoul Food Industrial | Atinum Investment vs. ADTechnology CoLtd | Atinum Investment vs. Spolytech Co |
| Iljin Display vs. Polaris Office Corp | Iljin Display vs. Korean Air Lines | Iljin Display vs. Chorokbaem Healthcare Co | Iljin Display vs. Aprogen Healthcare Games |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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