Correlation Between Atinum Investment and Daesung Industrial
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Daesung Industrial 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 Daesung Industrial 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 Daesung Industrial Co, you can compare the effects of market volatilities on Atinum Investment and Daesung Industrial 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 Daesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Daesung Industrial.
Diversification Opportunities for Atinum Investment and Daesung Industrial
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atinum and Daesung is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Daesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Industrial 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 Daesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Industrial has no effect on the direction of Atinum Investment i.e., Atinum Investment and Daesung Industrial go up and down completely randomly.
Pair Corralation between Atinum Investment and Daesung Industrial
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the Daesung Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Atinum Investment Co is 1.04 times less risky than Daesung Industrial. The stock trades about -0.09 of its potential returns per unit of risk. The Daesung Industrial Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 326,500 in Daesung Industrial Co on October 29, 2024 and sell it today you would lose (4,000) from holding Daesung Industrial Co or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Daesung Industrial Co
Performance |
| Timeline |
| Atinum Investment |
| Daesung Industrial |
Atinum Investment and Daesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Daesung Industrial
The main advantage of trading using opposite Atinum Investment and Daesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Daesung Industrial 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 Daesung Industrial will offset losses from the drop in Daesung Industrial's long position.| Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. SK Hynix | Atinum Investment vs. HMM Co |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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