Correlation Between Taewoong Logistics and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Taewoong Logistics 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 Taewoong Logistics and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taewoong Logistics CoLtd and Atinum Investment Co, you can compare the effects of market volatilities on Taewoong Logistics 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 Taewoong Logistics with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taewoong Logistics and Atinum Investment.
Diversification Opportunities for Taewoong Logistics and Atinum Investment
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Taewoong and Atinum is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Taewoong Logistics 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 Taewoong Logistics 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 Taewoong Logistics 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 Taewoong Logistics i.e., Taewoong Logistics and Atinum Investment go up and down completely randomly.
Pair Corralation between Taewoong Logistics and Atinum Investment
Assuming the 90 days trading horizon Taewoong Logistics CoLtd is expected to generate 1.11 times more return on investment than Atinum Investment. However, Taewoong Logistics is 1.11 times more volatile than Atinum Investment Co. It trades about -0.02 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.05 per unit of risk. If you would invest 360,672 in Taewoong Logistics CoLtd on November 3, 2024 and sell it today you would lose (72,672) from holding Taewoong Logistics CoLtd or give up 20.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taewoong Logistics CoLtd vs. Atinum Investment Co
Performance |
| Timeline |
| Taewoong Logistics CoLtd |
| Atinum Investment |
Taewoong Logistics and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taewoong Logistics and Atinum Investment
The main advantage of trading using opposite Taewoong Logistics and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taewoong Logistics 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.| Taewoong Logistics vs. Lotte Rental Co | Taewoong Logistics vs. Solution Advanced Technology | Taewoong Logistics vs. Vitzro Tech Co | Taewoong Logistics vs. YeaRimDang Publishing Co |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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