Correlation Between Atinum Investment and Sungwoo Electronics
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Sungwoo Electronics 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 Sungwoo Electronics 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 Sungwoo Electronics Co, you can compare the effects of market volatilities on Atinum Investment and Sungwoo Electronics 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 Sungwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Sungwoo Electronics.
Diversification Opportunities for Atinum Investment and Sungwoo Electronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and Sungwoo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Sungwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Electronics 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 Sungwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Electronics has no effect on the direction of Atinum Investment i.e., Atinum Investment and Sungwoo Electronics go up and down completely randomly.
Pair Corralation between Atinum Investment and Sungwoo Electronics
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Sungwoo Electronics. In addition to that, Atinum Investment is 1.1 times more volatile than Sungwoo Electronics Co. It trades about 0.0 of its total potential returns per unit of risk. Sungwoo Electronics Co is currently generating about 0.12 per unit of volatility. If you would invest 213,500 in Sungwoo Electronics Co on August 24, 2024 and sell it today you would earn a total of 216,500 from holding Sungwoo Electronics Co or generate 101.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
Atinum Investment Co vs. Sungwoo Electronics Co
Performance |
| Timeline |
| Atinum Investment |
| Sungwoo Electronics |
Atinum Investment and Sungwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Sungwoo Electronics
The main advantage of trading using opposite Atinum Investment and Sungwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Sungwoo Electronics 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 Sungwoo Electronics will offset losses from the drop in Sungwoo Electronics' long position.| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Daehan Steel | Atinum Investment vs. Intellian Technologies | Atinum Investment vs. A Tech Solution Co |
| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics vs. Microfriend |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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