Correlation Between Atinum Investment and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Kaonmedia 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 Kaonmedia 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 Kaonmedia Co, you can compare the effects of market volatilities on Atinum Investment and Kaonmedia 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 Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Kaonmedia.
Diversification Opportunities for Atinum Investment and Kaonmedia
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atinum and Kaonmedia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia 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 Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Atinum Investment i.e., Atinum Investment and Kaonmedia go up and down completely randomly.
Pair Corralation between Atinum Investment and Kaonmedia
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 1.41 times more return on investment than Kaonmedia. However, Atinum Investment is 1.41 times more volatile than Kaonmedia Co. It trades about -0.02 of its potential returns per unit of risk. Kaonmedia Co is currently generating about -0.06 per unit of risk. If you would invest 223,078 in Atinum Investment Co on October 30, 2024 and sell it today you would lose (12,578) from holding Atinum Investment Co or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Kaonmedia Co
Performance |
| Timeline |
| Atinum Investment |
| Kaonmedia |
Atinum Investment and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Kaonmedia
The main advantage of trading using opposite Atinum Investment and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Atinum Investment vs. ITM Semiconductor Co | Atinum Investment vs. Seoul Semiconductor Co | Atinum Investment vs. Tae Kyung Chemical | Atinum Investment vs. Kg Chemical |
| Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. Samsung Electronics Co | Kaonmedia vs. SK Hynix | Kaonmedia vs. HMM 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |