Correlation Between Atinum Investment and DeviceENGCOLtd
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and DeviceENGCOLtd 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 DeviceENGCOLtd 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 DeviceENGCOLtd, you can compare the effects of market volatilities on Atinum Investment and DeviceENGCOLtd 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 DeviceENGCOLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and DeviceENGCOLtd.
Diversification Opportunities for Atinum Investment and DeviceENGCOLtd
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and DeviceENGCOLtd is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and DeviceENGCOLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DeviceENGCOLtd 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 DeviceENGCOLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DeviceENGCOLtd has no effect on the direction of Atinum Investment i.e., Atinum Investment and DeviceENGCOLtd go up and down completely randomly.
Pair Corralation between Atinum Investment and DeviceENGCOLtd
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the DeviceENGCOLtd. In addition to that, Atinum Investment is 1.66 times more volatile than DeviceENGCOLtd. It trades about -0.13 of its total potential returns per unit of risk. DeviceENGCOLtd is currently generating about -0.12 per unit of volatility. If you would invest 1,315,000 in DeviceENGCOLtd on September 1, 2024 and sell it today you would lose (62,000) from holding DeviceENGCOLtd or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. DeviceENGCOLtd
Performance |
| Timeline |
| Atinum Investment |
| DeviceENGCOLtd |
Atinum Investment and DeviceENGCOLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and DeviceENGCOLtd
The main advantage of trading using opposite Atinum Investment and DeviceENGCOLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, DeviceENGCOLtd 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 DeviceENGCOLtd will offset losses from the drop in DeviceENGCOLtd's long position.The idea behind Atinum Investment Co and DeviceENGCOLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| DeviceENGCOLtd vs. Atinum Investment Co | DeviceENGCOLtd vs. Dongil Steel Co | DeviceENGCOLtd vs. Ni Steel | DeviceENGCOLtd vs. TS Investment Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |