Correlation Between Kbi Metal and ATON
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and ATON 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 Kbi Metal and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and ATON Inc, you can compare the effects of market volatilities on Kbi Metal and ATON 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 Kbi Metal with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and ATON.
Diversification Opportunities for Kbi Metal and ATON
Pay attention - limited upside
The 3 months correlation between Kbi and ATON is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and Kbi Metal 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 Kbi Metal Co are associated (or correlated) with ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Kbi Metal i.e., Kbi Metal and ATON go up and down completely randomly.
Pair Corralation between Kbi Metal and ATON
Assuming the 90 days trading horizon Kbi Metal Co is expected to under-perform the ATON. But the stock apears to be less risky and, when comparing its historical volatility, Kbi Metal Co is 1.73 times less risky than ATON. The stock trades about -0.17 of its potential returns per unit of risk. The ATON Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 398,000 in ATON Inc on September 13, 2024 and sell it today you would earn a total of 182,000 from holding ATON Inc or generate 45.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. ATON Inc
Performance |
| Timeline |
| Kbi Metal |
| ATON Inc |
Kbi Metal and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and ATON
The main advantage of trading using opposite Kbi Metal and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| Kbi Metal vs. Vissem Electronics Co | Kbi Metal vs. Daejoo Electronic Materials | Kbi Metal vs. Heungkuk Metaltech CoLtd | Kbi Metal vs. Samyoung Electronics Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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