Correlation Between TK Chemical and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both TK Chemical 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 TK Chemical and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TK Chemical and Atinum Investment Co, you can compare the effects of market volatilities on TK Chemical 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 TK Chemical with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TK Chemical and Atinum Investment.
Diversification Opportunities for TK Chemical and Atinum Investment
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 104480 and Atinum is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TK Chemical and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and TK Chemical 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 TK Chemical 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 TK Chemical i.e., TK Chemical and Atinum Investment go up and down completely randomly.
Pair Corralation between TK Chemical and Atinum Investment
Assuming the 90 days trading horizon TK Chemical is expected to under-perform the Atinum Investment. In addition to that, TK Chemical is 1.5 times more volatile than Atinum Investment Co. It trades about -0.48 of its total potential returns per unit of risk. Atinum Investment Co is currently generating about -0.51 per unit of volatility. If you would invest 225,000 in Atinum Investment Co on November 8, 2024 and sell it today you would lose (21,000) from holding Atinum Investment Co or give up 9.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TK Chemical vs. Atinum Investment Co
Performance |
| Timeline |
| TK Chemical |
| Atinum Investment |
TK Chemical and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TK Chemical and Atinum Investment
The main advantage of trading using opposite TK Chemical and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TK Chemical 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.| TK Chemical vs. Samsung Electronics Co | TK Chemical vs. Samsung Electronics Co | TK Chemical vs. Hyundai Motor Co | TK Chemical vs. Hyundai Motor |
| Atinum Investment vs. SKONEC Entertainment Co | Atinum Investment vs. Puloon Technology | Atinum Investment vs. Mobileleader CoLtd | Atinum Investment vs. AeroSpace Technology of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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