Correlation Between Atinum Investment and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Showbox Corp 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 Showbox Corp 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 Showbox Corp, you can compare the effects of market volatilities on Atinum Investment and Showbox Corp 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 Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Showbox Corp.
Diversification Opportunities for Atinum Investment and Showbox Corp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atinum and Showbox is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp 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 Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of Atinum Investment i.e., Atinum Investment and Showbox Corp go up and down completely randomly.
Pair Corralation between Atinum Investment and Showbox Corp
Assuming the 90 days trading horizon Atinum Investment is expected to generate 2.95 times less return on investment than Showbox Corp. In addition to that, Atinum Investment is 1.0 times more volatile than Showbox Corp. It trades about 0.0 of its total potential returns per unit of risk. Showbox Corp is currently generating about 0.01 per unit of volatility. If you would invest 343,500 in Showbox Corp on November 27, 2024 and sell it today you would lose (11,500) from holding Showbox Corp or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Atinum Investment Co vs. Showbox Corp
Performance |
| Timeline |
| Atinum Investment |
| Showbox Corp |
Atinum Investment and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Showbox Corp
The main advantage of trading using opposite Atinum Investment and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Seoul Food Industrial | Atinum Investment vs. ADTechnology CoLtd | Atinum Investment vs. Spolytech Co |
| Showbox Corp vs. Haitai Confectionery Foods | Showbox Corp vs. Handok Clean Tech | Showbox Corp vs. Samyang Foods Co | Showbox Corp vs. Sejong Telecom |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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