Correlation Between Daesung Industrial and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Daesung Industrial 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 Daesung Industrial and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Industrial Co and Atinum Investment Co, you can compare the effects of market volatilities on Daesung Industrial 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 Daesung Industrial with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Industrial and Atinum Investment.
Diversification Opportunities for Daesung Industrial and Atinum Investment
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daesung and Atinum is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Industrial 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 Daesung Industrial 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 Daesung Industrial 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 Daesung Industrial i.e., Daesung Industrial and Atinum Investment go up and down completely randomly.
Pair Corralation between Daesung Industrial and Atinum Investment
Assuming the 90 days trading horizon Daesung Industrial Co is expected to generate 1.04 times more return on investment than Atinum Investment. However, Daesung Industrial is 1.04 times more volatile than Atinum Investment Co. It trades about -0.04 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.09 per unit of risk. If you would invest 326,500 in Daesung Industrial Co on October 29, 2024 and sell it today you would lose (4,000) from holding Daesung Industrial Co or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Industrial Co vs. Atinum Investment Co
Performance |
| Timeline |
| Daesung Industrial |
| Atinum Investment |
Daesung Industrial and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Industrial and Atinum Investment
The main advantage of trading using opposite Daesung Industrial and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Industrial 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.| Daesung Industrial vs. KB Financial Group | Daesung Industrial vs. Shinhan Financial Group | Daesung Industrial vs. Hana Financial | Daesung Industrial vs. Woori Financial Group |
| Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. Samsung Electronics Co | Atinum Investment vs. SK Hynix | Atinum Investment vs. HMM 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |