Correlation Between Tuksu Engineering and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Tuksu Engineering and Atinum Investment 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 Tuksu Engineering and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuksu Engineering ConstructionLtd and Atinum Investment Co, you can compare the effects of market volatilities on Tuksu Engineering and Atinum Investment 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 Tuksu Engineering with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuksu Engineering and Atinum Investment.
Diversification Opportunities for Tuksu Engineering and Atinum Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tuksu and Atinum is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tuksu Engineering Construction and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Tuksu Engineering 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 Tuksu Engineering ConstructionLtd are associated (or correlated) with Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Tuksu Engineering i.e., Tuksu Engineering and Atinum Investment go up and down completely randomly.
Pair Corralation between Tuksu Engineering and Atinum Investment
Assuming the 90 days trading horizon Tuksu Engineering ConstructionLtd is expected to generate 1.38 times more return on investment than Atinum Investment. However, Tuksu Engineering is 1.38 times more volatile than Atinum Investment Co. It trades about -0.03 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.06 per unit of risk. If you would invest 744,000 in Tuksu Engineering ConstructionLtd on September 3, 2024 and sell it today you would lose (133,000) from holding Tuksu Engineering ConstructionLtd or give up 17.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuksu Engineering Construction vs. Atinum Investment Co
Performance |
| Timeline |
| Tuksu Engineering |
| Atinum Investment |
Tuksu Engineering and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuksu Engineering and Atinum Investment
The main advantage of trading using opposite Tuksu Engineering and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuksu Engineering position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| Tuksu Engineering vs. Jin Air Co | Tuksu Engineering vs. Jeil Steel Mfg | Tuksu Engineering vs. Lotte Non Life Insurance | Tuksu Engineering vs. DB Insurance Co |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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