Correlation Between Alton Sports and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Alton Sports 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 Alton Sports and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Atinum Investment Co, you can compare the effects of market volatilities on Alton Sports 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 Alton Sports with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Atinum Investment.
Diversification Opportunities for Alton Sports and Atinum Investment
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alton and Atinum is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Alton Sports 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 Alton Sports CoLtd 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 Alton Sports i.e., Alton Sports and Atinum Investment go up and down completely randomly.
Pair Corralation between Alton Sports and Atinum Investment
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, Alton Sports CoLtd is 1.36 times less risky than Atinum Investment. The stock trades about -0.13 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 237,610 in Atinum Investment Co on September 4, 2024 and sell it today you would lose (610.00) from holding Atinum Investment Co or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Atinum Investment Co
Performance |
| Timeline |
| Alton Sports CoLtd |
| Atinum Investment |
Alton Sports and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Atinum Investment
The main advantage of trading using opposite Alton Sports and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports 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.| Alton Sports vs. Korea Real Estate | Alton Sports vs. Busan Industrial Co | Alton Sports vs. UNISEM Co | Alton Sports vs. RPBio Inc |
| Atinum Investment vs. Hana Financial | Atinum Investment vs. Samsung Life Insurance | Atinum Investment vs. Handok Clean Tech | Atinum Investment vs. Jeju Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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