Correlation Between Atinum Investment and Daihan Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Daihan Pharmaceutical 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 Daihan Pharmaceutical 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 Daihan Pharmaceutical CoLtd, you can compare the effects of market volatilities on Atinum Investment and Daihan Pharmaceutical 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 Daihan Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Daihan Pharmaceutical.
Diversification Opportunities for Atinum Investment and Daihan Pharmaceutical
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atinum and Daihan is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Daihan Pharmaceutical CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daihan Pharmaceutical 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 Daihan Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daihan Pharmaceutical has no effect on the direction of Atinum Investment i.e., Atinum Investment and Daihan Pharmaceutical go up and down completely randomly.
Pair Corralation between Atinum Investment and Daihan Pharmaceutical
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Daihan Pharmaceutical. In addition to that, Atinum Investment is 3.36 times more volatile than Daihan Pharmaceutical CoLtd. It trades about -0.01 of its total potential returns per unit of risk. Daihan Pharmaceutical CoLtd is currently generating about 0.0 per unit of volatility. If you would invest 2,730,000 in Daihan Pharmaceutical CoLtd on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Daihan Pharmaceutical CoLtd or generate 0.0% 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. Daihan Pharmaceutical CoLtd
Performance |
| Timeline |
| Atinum Investment |
| Daihan Pharmaceutical |
Atinum Investment and Daihan Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Daihan Pharmaceutical
The main advantage of trading using opposite Atinum Investment and Daihan Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Daihan Pharmaceutical 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 Daihan Pharmaceutical will offset losses from the drop in Daihan Pharmaceutical'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 |
| Daihan Pharmaceutical vs. Kolon Life Science | Daihan Pharmaceutical vs. JETEMA Co | Daihan Pharmaceutical vs. Aminologics CoLtd | Daihan Pharmaceutical vs. HLB Pharmaceutical 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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