Correlation Between Chorokbaem Healthcare and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare 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 Chorokbaem Healthcare and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and Atinum Investment Co, you can compare the effects of market volatilities on Chorokbaem Healthcare 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 Chorokbaem Healthcare with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and Atinum Investment.
Diversification Opportunities for Chorokbaem Healthcare and Atinum Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chorokbaem and Atinum is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Chorokbaem Healthcare 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 Chorokbaem Healthcare Co 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 Chorokbaem Healthcare i.e., Chorokbaem Healthcare and Atinum Investment go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and Atinum Investment
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to under-perform the Atinum Investment. In addition to that, Chorokbaem Healthcare is 1.07 times more volatile than Atinum Investment Co. It trades about -0.14 of its total potential returns per unit of risk. Atinum Investment Co is currently generating about -0.05 per unit of volatility. If you would invest 293,000 in Atinum Investment Co on September 3, 2024 and sell it today you would lose (57,500) from holding Atinum Investment Co or give up 19.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. Atinum Investment Co
Performance |
| Timeline |
| Chorokbaem Healthcare |
| Atinum Investment |
Chorokbaem Healthcare and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and Atinum Investment
The main advantage of trading using opposite Chorokbaem Healthcare and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare 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.| Chorokbaem Healthcare vs. Sunny Electronics Corp | Chorokbaem Healthcare vs. Solution Advanced Technology | Chorokbaem Healthcare vs. Dongil Technology | Chorokbaem Healthcare vs. Daejoo Electronic Materials |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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