Correlation Between Atinum Investment and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Daishin Balance 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 Daishin Balance 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 Daishin Balance No8, you can compare the effects of market volatilities on Atinum Investment and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Daishin Balance.
Diversification Opportunities for Atinum Investment and Daishin Balance
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and Daishin is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of Atinum Investment i.e., Atinum Investment and Daishin Balance go up and down completely randomly.
Pair Corralation between Atinum Investment and Daishin Balance
Assuming the 90 days trading horizon Atinum Investment is expected to generate 5.21 times less return on investment than Daishin Balance. But when comparing it to its historical volatility, Atinum Investment Co is 1.38 times less risky than Daishin Balance. It trades about 0.01 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 400,000 in Daishin Balance No8 on August 28, 2024 and sell it today you would earn a total of 33,000 from holding Daishin Balance No8 or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Daishin Balance No8
Performance |
| Timeline |
| Atinum Investment |
| Daishin Balance No8 |
Atinum Investment and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and Daishin Balance
The main advantage of trading using opposite Atinum Investment and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance's long position.| Atinum Investment vs. Korea New Network | Atinum Investment vs. Dong A Eltek | Atinum Investment vs. Dreamus Company | Atinum Investment vs. SK Bioscience Co |
| Daishin Balance vs. Pureun Mutual Savings | Daishin Balance vs. Coloray International Investment | Daishin Balance vs. Cuckoo Homesys Co | Daishin Balance vs. Sangsangin Investment Securities |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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