Correlation Between Daou Data and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Daou Data 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 Daou Data and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daou Data Corp and Atinum Investment Co, you can compare the effects of market volatilities on Daou Data 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 Daou Data with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daou Data and Atinum Investment.
Diversification Opportunities for Daou Data and Atinum Investment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Daou and Atinum is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Daou Data Corp and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Daou Data 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 Daou Data Corp 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 Daou Data i.e., Daou Data and Atinum Investment go up and down completely randomly.
Pair Corralation between Daou Data and Atinum Investment
Assuming the 90 days trading horizon Daou Data Corp is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, Daou Data Corp is 1.43 times less risky than Atinum Investment. The stock trades about -0.16 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 220,710 in Atinum Investment Co on October 15, 2024 and sell it today you would earn a total of 790.00 from holding Atinum Investment Co or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daou Data Corp vs. Atinum Investment Co
Performance |
| Timeline |
| Daou Data Corp |
| Atinum Investment |
Daou Data and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daou Data and Atinum Investment
The main advantage of trading using opposite Daou Data and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daou Data 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.| Daou Data vs. Dongjin Semichem Co | Daou Data vs. AhnLab Inc | Daou Data vs. Posco ICT | Daou Data vs. CJ ENM |
| Atinum Investment vs. Samyoung Electronics Co | Atinum Investment vs. UJU Electronics Co | Atinum Investment vs. Korea Electronic Certification | Atinum Investment vs. SungMoon 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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