Correlation Between Atinum Investment and TPC Mechatronics
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and TPC Mechatronics 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 TPC Mechatronics 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 TPC Mechatronics, you can compare the effects of market volatilities on Atinum Investment and TPC Mechatronics 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 TPC Mechatronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and TPC Mechatronics.
Diversification Opportunities for Atinum Investment and TPC Mechatronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atinum and TPC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and TPC Mechatronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPC Mechatronics 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 TPC Mechatronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPC Mechatronics has no effect on the direction of Atinum Investment i.e., Atinum Investment and TPC Mechatronics go up and down completely randomly.
Pair Corralation between Atinum Investment and TPC Mechatronics
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.73 times more return on investment than TPC Mechatronics. However, Atinum Investment Co is 1.36 times less risky than TPC Mechatronics. It trades about 0.01 of its potential returns per unit of risk. TPC Mechatronics is currently generating about -0.02 per unit of risk. If you would invest 240,455 in Atinum Investment Co on August 31, 2024 and sell it today you would lose (4,955) from holding Atinum Investment Co or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. TPC Mechatronics
Performance |
| Timeline |
| Atinum Investment |
| TPC Mechatronics |
Atinum Investment and TPC Mechatronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and TPC Mechatronics
The main advantage of trading using opposite Atinum Investment and TPC Mechatronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, TPC Mechatronics 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 TPC Mechatronics will offset losses from the drop in TPC Mechatronics' 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 |
| TPC Mechatronics vs. Digital Multimedia Technology | TPC Mechatronics vs. Kaonmedia Co | TPC Mechatronics vs. FNC Entertainment Co | TPC Mechatronics vs. MEDIANA CoLtd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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