Correlation Between ATON and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both ATON and Daelim Trading 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 ATON and Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATON Inc and Daelim Trading Co, you can compare the effects of market volatilities on ATON and Daelim Trading 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 ATON with a short position of Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATON and Daelim Trading.
Diversification Opportunities for ATON and Daelim Trading
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATON and Daelim is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ATON Inc and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading and ATON 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 ATON Inc are associated (or correlated) with Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of ATON i.e., ATON and Daelim Trading go up and down completely randomly.
Pair Corralation between ATON and Daelim Trading
Assuming the 90 days trading horizon ATON Inc is expected to generate 1.25 times more return on investment than Daelim Trading. However, ATON is 1.25 times more volatile than Daelim Trading Co. It trades about 0.12 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.1 per unit of risk. If you would invest 626,000 in ATON Inc on November 27, 2024 and sell it today you would earn a total of 32,000 from holding ATON Inc or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATON Inc vs. Daelim Trading Co
Performance |
| Timeline |
| ATON Inc |
| Daelim Trading |
ATON and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATON and Daelim Trading
The main advantage of trading using opposite ATON and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATON position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| ATON vs. Ssangyong Materials Corp | ATON vs. Lotte Energy Materials | ATON vs. Mobile Appliance | ATON vs. WONIK Materials CoLtd |
| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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