Correlation Between SOLiD and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both SOLiD 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 SOLiD and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOLiD Inc and Atinum Investment Co, you can compare the effects of market volatilities on SOLiD 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 SOLiD with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLiD and Atinum Investment.
Diversification Opportunities for SOLiD and Atinum Investment
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SOLiD and Atinum is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SOLiD Inc and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and SOLiD 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 SOLiD Inc 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 SOLiD i.e., SOLiD and Atinum Investment go up and down completely randomly.
Pair Corralation between SOLiD and Atinum Investment
Assuming the 90 days trading horizon SOLiD Inc is expected to generate 0.7 times more return on investment than Atinum Investment. However, SOLiD Inc is 1.43 times less risky than Atinum Investment. It trades about 0.1 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.06 per unit of risk. If you would invest 490,000 in SOLiD Inc on September 13, 2024 and sell it today you would earn a total of 30,000 from holding SOLiD Inc or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SOLiD Inc vs. Atinum Investment Co
Performance |
| Timeline |
| SOLiD Inc |
| Atinum Investment |
SOLiD and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLiD and Atinum Investment
The main advantage of trading using opposite SOLiD and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLiD 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.| SOLiD vs. Cube Entertainment | SOLiD vs. Dreamus Company | SOLiD vs. LG Energy Solution | SOLiD vs. Dongwon System |
| Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group | Atinum Investment vs. Hana Financial | Atinum Investment vs. Woori Financial Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |