Correlation Between Kukil Metal and ATON
Can any of the company-specific risk be diversified away by investing in both Kukil Metal 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 Kukil Metal and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukil Metal Co and ATON Inc, you can compare the effects of market volatilities on Kukil Metal 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 Kukil Metal with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and ATON.
Diversification Opportunities for Kukil Metal and ATON
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kukil and ATON is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and Kukil Metal 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 Kukil Metal Co 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 Kukil Metal i.e., Kukil Metal and ATON go up and down completely randomly.
Pair Corralation between Kukil Metal and ATON
Assuming the 90 days trading horizon Kukil Metal is expected to generate 82.17 times less return on investment than ATON. But when comparing it to its historical volatility, Kukil Metal Co is 2.67 times less risky than ATON. It trades about 0.0 of its potential returns per unit of risk. ATON Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 540,000 in ATON Inc on September 25, 2024 and sell it today you would earn a total of 22,000 from holding ATON Inc or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. ATON Inc
Performance |
| Timeline |
| Kukil Metal |
| ATON Inc |
Kukil Metal and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and ATON
The main advantage of trading using opposite Kukil Metal and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal 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.| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. PJ Metal Co | Kukil Metal vs. Samhyun Steel Co |
| ATON vs. Hanjoo Light Metal | ATON vs. Kukil Metal Co | ATON vs. Lake Materials Co | ATON vs. Samsung Publishing Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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