Correlation Between Atinum Investment and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment Co, you can compare the effects of market volatilities on Atinum Investment and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and SAMG Entertainment.
Diversification Opportunities for Atinum Investment and SAMG Entertainment
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and SAMG is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Atinum Investment i.e., Atinum Investment and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Atinum Investment and SAMG Entertainment
Assuming the 90 days trading horizon Atinum Investment Co is expected to under-perform the SAMG Entertainment. In addition to that, Atinum Investment is 1.09 times more volatile than SAMG Entertainment Co. It trades about -0.06 of its total potential returns per unit of risk. SAMG Entertainment Co is currently generating about 0.12 per unit of volatility. If you would invest 1,205,000 in SAMG Entertainment Co on September 19, 2024 and sell it today you would earn a total of 112,000 from holding SAMG Entertainment Co or generate 9.29% 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. SAMG Entertainment Co
Performance |
| Timeline |
| Atinum Investment |
| SAMG Entertainment |
Atinum Investment and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atinum Investment and SAMG Entertainment
The main advantage of trading using opposite Atinum Investment and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group | Atinum Investment vs. Hana Financial | Atinum Investment vs. Woori Financial Group |
| SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. LG Energy Solution | SAMG Entertainment vs. SK Hynix |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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