Correlation Between Atinum Investment and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on Atinum Investment and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Mobile Appliance.
Diversification Opportunities for Atinum Investment and Mobile Appliance
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and Mobile is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of Atinum Investment i.e., Atinum Investment and Mobile Appliance go up and down completely randomly.
Pair Corralation between Atinum Investment and Mobile Appliance
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Mobile Appliance. But the stock apears to be less risky and, when comparing its historical volatility, Atinum Investment Co is 1.2 times less risky than Mobile Appliance. The stock trades about -0.05 of its potential returns per unit of risk. The Mobile Appliance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 215,500 in Mobile Appliance on August 29, 2024 and sell it today you would earn a total of 11,000 from holding Mobile Appliance or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Mobile Appliance
Performance |
| Timeline |
| Atinum Investment |
| Mobile Appliance |
Atinum Investment and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Mobile Appliance
The main advantage of trading using opposite Atinum Investment and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance's long position.| Atinum Investment vs. Cube Entertainment | Atinum Investment vs. Dreamus Company | Atinum Investment vs. LG Energy Solution | Atinum Investment vs. Dongwon System |
| Mobile Appliance vs. Automobile Pc | Mobile Appliance vs. Korean Reinsurance Co | Mobile Appliance vs. DSC Investment | Mobile Appliance vs. Stic Investments |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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