Correlation Between NICE Information and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both NICE Information 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 NICE Information and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Atinum Investment Co, you can compare the effects of market volatilities on NICE Information 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 NICE Information with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Atinum Investment.
Diversification Opportunities for NICE Information and Atinum Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NICE and Atinum is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and NICE Information 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 NICE Information Service 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 NICE Information i.e., NICE Information and Atinum Investment go up and down completely randomly.
Pair Corralation between NICE Information and Atinum Investment
Assuming the 90 days trading horizon NICE Information Service is expected to generate 1.38 times more return on investment than Atinum Investment. However, NICE Information is 1.38 times more volatile than Atinum Investment Co. It trades about 0.16 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 1,201,000 in NICE Information Service on December 10, 2024 and sell it today you would earn a total of 70,000 from holding NICE Information Service or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Atinum Investment Co
Performance |
| Timeline |
| NICE Information Service |
| Atinum Investment |
NICE Information and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Atinum Investment
The main advantage of trading using opposite NICE Information and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information 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.| NICE Information vs. Daishin Information Communications | NICE Information vs. Inzi Display CoLtd | NICE Information vs. Handok Clean Tech | NICE Information vs. Sangsin Energy Display |
| Atinum Investment vs. Kukdo Chemical Co | Atinum Investment vs. Aekyung Petrochemical Co | Atinum Investment vs. Dongnam Chemical Co | Atinum Investment vs. Hanwha Chemical 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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