Correlation Between Nice Information and ATON
Can any of the company-specific risk be diversified away by investing in both Nice Information and ATON 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 ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and ATON Inc, you can compare the effects of market volatilities on Nice Information and ATON 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 ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and ATON.
Diversification Opportunities for Nice Information and ATON
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nice and ATON is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc 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 Telecommunication are associated (or correlated) with ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Nice Information i.e., Nice Information and ATON go up and down completely randomly.
Pair Corralation between Nice Information and ATON
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to under-perform the ATON. But the stock apears to be less risky and, when comparing its historical volatility, Nice Information Telecommunication is 10.81 times less risky than ATON. The stock trades about -0.15 of its potential returns per unit of risk. The ATON Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 416,500 in ATON Inc on August 25, 2024 and sell it today you would earn a total of 107,500 from holding ATON Inc or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. ATON Inc
Performance |
| Timeline |
| Nice Information Tel |
| ATON Inc |
Nice Information and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and ATON
The main advantage of trading using opposite Nice Information and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| Nice Information vs. Soulbrain Holdings Co | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV Co |
| ATON vs. Shinsegae Information Communication | ATON vs. Lotte Energy Materials | ATON vs. National Plastic Co | ATON vs. LS Materials |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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