Correlation Between Atinum Investment and SK Square
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and SK Square 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 SK Square 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 SK Square Co, you can compare the effects of market volatilities on Atinum Investment and SK Square 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 SK Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and SK Square.
Diversification Opportunities for Atinum Investment and SK Square
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atinum and 402340 is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and SK Square Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Square 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 SK Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Square has no effect on the direction of Atinum Investment i.e., Atinum Investment and SK Square go up and down completely randomly.
Pair Corralation between Atinum Investment and SK Square
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.6 times more return on investment than SK Square. However, Atinum Investment Co is 1.68 times less risky than SK Square. It trades about -0.02 of its potential returns per unit of risk. SK Square Co is currently generating about -0.01 per unit of risk. If you would invest 246,000 in Atinum Investment Co on September 3, 2024 and sell it today you would lose (10,500) from holding Atinum Investment Co or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. SK Square Co
Performance |
| Timeline |
| Atinum Investment |
| SK Square |
Atinum Investment and SK Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and SK Square
The main advantage of trading using opposite Atinum Investment and SK Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, SK Square 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 SK Square will offset losses from the drop in SK Square's long position.| Atinum Investment vs. Dongjin Semichem Co | Atinum Investment vs. AhnLab Inc | Atinum Investment vs. Posco ICT | Atinum Investment vs. CJ ENM |
| SK Square vs. PI Advanced Materials | SK Square vs. Top Material Co | SK Square vs. Daewoo Engineering Construction | SK Square vs. Ssangyong Materials 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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