Correlation Between Seoul Broadcasting and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Seoul Broadcasting 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 Seoul Broadcasting and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Broadcasting System and Atinum Investment Co, you can compare the effects of market volatilities on Seoul Broadcasting 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 Seoul Broadcasting with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Broadcasting and Atinum Investment.
Diversification Opportunities for Seoul Broadcasting and Atinum Investment
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seoul and Atinum is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Broadcasting System and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Seoul Broadcasting 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 Seoul Broadcasting System 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 Seoul Broadcasting i.e., Seoul Broadcasting and Atinum Investment go up and down completely randomly.
Pair Corralation between Seoul Broadcasting and Atinum Investment
Assuming the 90 days trading horizon Seoul Broadcasting System is expected to generate 0.31 times more return on investment than Atinum Investment. However, Seoul Broadcasting System is 3.17 times less risky than Atinum Investment. It trades about 0.05 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.11 per unit of risk. If you would invest 1,521,000 in Seoul Broadcasting System on September 3, 2024 and sell it today you would earn a total of 14,000 from holding Seoul Broadcasting System or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Broadcasting System vs. Atinum Investment Co
Performance |
| Timeline |
| Seoul Broadcasting System |
| Atinum Investment |
Seoul Broadcasting and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Broadcasting and Atinum Investment
The main advantage of trading using opposite Seoul Broadcasting and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Broadcasting 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.| Seoul Broadcasting vs. Sunny Electronics Corp | Seoul Broadcasting vs. AurosTechnology | Seoul Broadcasting vs. Solution Advanced Technology | Seoul Broadcasting vs. Shinil Electronics Co |
| Atinum Investment vs. Dongjin Semichem Co | Atinum Investment vs. AhnLab Inc | Atinum Investment vs. Posco ICT | Atinum Investment vs. CJ ENM |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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