Correlation Between Atinum Investment and Seohee Construction
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Seohee Construction 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 Seohee Construction 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 Seohee Construction Co, you can compare the effects of market volatilities on Atinum Investment and Seohee Construction 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 Seohee Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Seohee Construction.
Diversification Opportunities for Atinum Investment and Seohee Construction
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and Seohee is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Seohee Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seohee Construction 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 Seohee Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seohee Construction has no effect on the direction of Atinum Investment i.e., Atinum Investment and Seohee Construction go up and down completely randomly.
Pair Corralation between Atinum Investment and Seohee Construction
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.63 times more return on investment than Seohee Construction. However, Atinum Investment Co is 1.58 times less risky than Seohee Construction. It trades about -0.04 of its potential returns per unit of risk. Seohee Construction Co is currently generating about -0.15 per unit of risk. If you would invest 216,500 in Atinum Investment Co on November 18, 2024 and sell it today you would lose (2,000) from holding Atinum Investment Co or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Seohee Construction Co
Performance |
| Timeline |
| Atinum Investment |
| Seohee Construction |
Atinum Investment and Seohee Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Seohee Construction
The main advantage of trading using opposite Atinum Investment and Seohee Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Seohee Construction 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 Seohee Construction will offset losses from the drop in Seohee Construction's long position.| Atinum Investment vs. Nice Information Telecommunication | Atinum Investment vs. PI Advanced Materials | Atinum Investment vs. Lake Materials Co | Atinum Investment vs. LAKE MATERIALS LTD |
| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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