Correlation Between Atinum Investment and Kosdaq Composite
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By analyzing existing cross correlation between Atinum Investment Co and Kosdaq Composite Index, you can compare the effects of market volatilities on Atinum Investment and Kosdaq Composite 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 Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Kosdaq Composite.
Diversification Opportunities for Atinum Investment and Kosdaq Composite
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and Kosdaq is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index 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 Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of Atinum Investment i.e., Atinum Investment and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Atinum Investment and Kosdaq Composite
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 2.3 times more return on investment than Kosdaq Composite. However, Atinum Investment is 2.3 times more volatile than Kosdaq Composite Index. It trades about 0.22 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about 0.41 per unit of risk. If you would invest 197,502 in Atinum Investment Co on October 9, 2024 and sell it today you would earn a total of 32,498 from holding Atinum Investment Co or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atinum Investment Co vs. Kosdaq Composite Index
Performance |
| Timeline |
Atinum Investment and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Atinum Investment Co
Pair trading matchups for Atinum Investment
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Atinum Investment and Kosdaq Composite
The main advantage of trading using opposite Atinum Investment and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Kosdaq Composite 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 Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.The idea behind Atinum Investment Co and Kosdaq Composite Index 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.
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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