Correlation Between Korea Information and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Korea Information 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 Korea Information and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Information Engineering and Atinum Investment Co, you can compare the effects of market volatilities on Korea Information 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 Korea Information with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Information and Atinum Investment.
Diversification Opportunities for Korea Information and Atinum Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korea and Atinum is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Korea Information Engineering and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Korea 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 Korea Information Engineering 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 Korea Information i.e., Korea Information and Atinum Investment go up and down completely randomly.
Pair Corralation between Korea Information and Atinum Investment
Assuming the 90 days trading horizon Korea Information Engineering is expected to generate 1.56 times more return on investment than Atinum Investment. However, Korea Information is 1.56 times more volatile than Atinum Investment Co. It trades about 0.2 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.09 per unit of risk. If you would invest 239,000 in Korea Information Engineering on October 30, 2024 and sell it today you would earn a total of 19,000 from holding Korea Information Engineering or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Information Engineering vs. Atinum Investment Co
Performance |
| Timeline |
| Korea Information |
| Atinum Investment |
Korea Information and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Information and Atinum Investment
The main advantage of trading using opposite Korea Information and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Information 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.| Korea Information vs. Samsung Electronics Co | Korea Information vs. Samsung Electronics Co | Korea Information vs. SK Hynix | Korea Information vs. HMM Co |
| Atinum Investment vs. ITM Semiconductor Co | Atinum Investment vs. Seoul Semiconductor Co | Atinum Investment vs. Tae Kyung Chemical | Atinum Investment vs. Kg Chemical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |