Correlation Between Atinum Investment and Dawonsys CoLtd
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Dawonsys CoLtd 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 Dawonsys CoLtd 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 Dawonsys CoLtd, you can compare the effects of market volatilities on Atinum Investment and Dawonsys CoLtd 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 Dawonsys CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Dawonsys CoLtd.
Diversification Opportunities for Atinum Investment and Dawonsys CoLtd
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atinum and Dawonsys is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Dawonsys CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawonsys CoLtd 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 Dawonsys CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawonsys CoLtd has no effect on the direction of Atinum Investment i.e., Atinum Investment and Dawonsys CoLtd go up and down completely randomly.
Pair Corralation between Atinum Investment and Dawonsys CoLtd
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Dawonsys CoLtd. In addition to that, Atinum Investment is 1.32 times more volatile than Dawonsys CoLtd. It trades about -0.11 of its total potential returns per unit of risk. Dawonsys CoLtd is currently generating about 0.02 per unit of volatility. If you would invest 1,034,000 in Dawonsys CoLtd on September 3, 2024 and sell it today you would earn a total of 5,000 from holding Dawonsys CoLtd or generate 0.48% 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. Dawonsys CoLtd
Performance |
| Timeline |
| Atinum Investment |
| Dawonsys CoLtd |
Atinum Investment and Dawonsys CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Dawonsys CoLtd
The main advantage of trading using opposite Atinum Investment and Dawonsys CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Dawonsys CoLtd 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 Dawonsys CoLtd will offset losses from the drop in Dawonsys CoLtd's long position.| Atinum Investment vs. Dongjin Semichem Co | Atinum Investment vs. AhnLab Inc | Atinum Investment vs. Posco ICT | Atinum Investment vs. CJ ENM |
| Dawonsys CoLtd vs. Atinum Investment Co | Dawonsys CoLtd vs. Korea Investment Holdings | Dawonsys CoLtd vs. Stic Investments | Dawonsys CoLtd vs. Golden Bridge Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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