Correlation Between PC Direct and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both PC Direct 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 PC Direct and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PC Direct and Atinum Investment Co, you can compare the effects of market volatilities on PC Direct 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 PC Direct with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PC Direct and Atinum Investment.
Diversification Opportunities for PC Direct and Atinum Investment
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 051380 and Atinum is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding PC Direct and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and PC Direct 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 PC Direct 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 PC Direct i.e., PC Direct and Atinum Investment go up and down completely randomly.
Pair Corralation between PC Direct and Atinum Investment
Assuming the 90 days trading horizon PC Direct is expected to generate 1.55 times more return on investment than Atinum Investment. However, PC Direct is 1.55 times more volatile than Atinum Investment Co. It trades about 0.04 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.01 per unit of risk. If you would invest 235,220 in PC Direct on November 3, 2024 and sell it today you would earn a total of 26,780 from holding PC Direct or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PC Direct vs. Atinum Investment Co
Performance |
| Timeline |
| PC Direct |
| Atinum Investment |
PC Direct and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PC Direct and Atinum Investment
The main advantage of trading using opposite PC Direct and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PC Direct 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.| PC Direct vs. KTB Investment Securities | PC Direct vs. AeroSpace Technology of | PC Direct vs. Hanjin Transportation Co | PC Direct vs. LG Household Healthcare |
| Atinum Investment vs. Hankook Furniture Co | Atinum Investment vs. Hyundai Home Shopping | Atinum Investment vs. Mobile Appliance | Atinum Investment vs. Dongbang Transport Logistics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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