Correlation Between KTB Investment and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both KTB Investment 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 KTB Investment and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTB Investment Securities and Atinum Investment Co, you can compare the effects of market volatilities on KTB Investment 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 KTB Investment with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTB Investment and Atinum Investment.
Diversification Opportunities for KTB Investment and Atinum Investment
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KTB and Atinum is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding KTB Investment Securities and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and KTB 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 KTB Investment Securities 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 KTB Investment i.e., KTB Investment and Atinum Investment go up and down completely randomly.
Pair Corralation between KTB Investment and Atinum Investment
Assuming the 90 days trading horizon KTB Investment Securities is expected to generate 0.41 times more return on investment than Atinum Investment. However, KTB Investment Securities is 2.45 times less risky than Atinum Investment. It trades about 0.12 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 260,500 in KTB Investment Securities on September 19, 2024 and sell it today you would earn a total of 12,500 from holding KTB Investment Securities or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KTB Investment Securities vs. Atinum Investment Co
Performance |
| Timeline |
| KTB Investment Securities |
| Atinum Investment |
KTB Investment and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTB Investment and Atinum Investment
The main advantage of trading using opposite KTB Investment and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTB Investment 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.| KTB Investment vs. Samsung Electronics Co | KTB Investment vs. Samsung Electronics Co | KTB Investment vs. SK Hynix | KTB Investment vs. POSCO Holdings |
| Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group | Atinum Investment vs. Hana Financial | Atinum Investment vs. Woori Financial Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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