Correlation Between Shinsegae Food and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food 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 Shinsegae Food and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and Atinum Investment Co, you can compare the effects of market volatilities on Shinsegae Food 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 Shinsegae Food with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Atinum Investment.
Diversification Opportunities for Shinsegae Food and Atinum Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsegae and Atinum is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food i.e., Shinsegae Food and Atinum Investment go up and down completely randomly.
Pair Corralation between Shinsegae Food and Atinum Investment
Assuming the 90 days trading horizon Shinsegae Food is expected to under-perform the Atinum Investment. In addition to that, Shinsegae Food is 2.32 times more volatile than Atinum Investment Co. It trades about -0.31 of its total potential returns per unit of risk. Atinum Investment Co is currently generating about -0.02 per unit of volatility. If you would invest 215,026 in Atinum Investment Co on October 24, 2024 and sell it today you would lose (1,526) from holding Atinum Investment Co or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Atinum Investment Co
Performance |
| Timeline |
| Shinsegae Food |
| Atinum Investment |
Shinsegae Food and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Atinum Investment
The main advantage of trading using opposite Shinsegae Food and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food 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.| Shinsegae Food vs. Keyang Electric Machinery | Shinsegae Food vs. Nice Information Telecommunication | Shinsegae Food vs. Seoam Machinery Industry | Shinsegae Food vs. Seohee Construction Co |
| Atinum Investment vs. Formetal Co | Atinum Investment vs. Shinsegae Food | Atinum Investment vs. Foodnamoo | Atinum Investment vs. Daiyang Metal 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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