Correlation Between ATON and Namu Tech
Can any of the company-specific risk be diversified away by investing in both ATON and Namu Tech 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 Namu Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATON Inc and Namu Tech CoLtd, you can compare the effects of market volatilities on ATON and Namu Tech 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 Namu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATON and Namu Tech.
Diversification Opportunities for ATON and Namu Tech
Very good diversification
The 3 months correlation between ATON and Namu is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ATON Inc and Namu Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namu Tech CoLtd 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 Namu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namu Tech CoLtd has no effect on the direction of ATON i.e., ATON and Namu Tech go up and down completely randomly.
Pair Corralation between ATON and Namu Tech
Assuming the 90 days trading horizon ATON Inc is expected to generate 1.44 times more return on investment than Namu Tech. However, ATON is 1.44 times more volatile than Namu Tech CoLtd. It trades about 0.06 of its potential returns per unit of risk. Namu Tech CoLtd is currently generating about -0.03 per unit of risk. If you would invest 540,000 in ATON Inc on September 25, 2024 and sell it today you would earn a total of 22,000 from holding ATON Inc or generate 4.07% 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. Namu Tech CoLtd
Performance |
| Timeline |
| ATON Inc |
| Namu Tech CoLtd |
ATON and Namu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATON and Namu Tech
The main advantage of trading using opposite ATON and Namu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATON position performs unexpectedly, Namu Tech 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 Namu Tech will offset losses from the drop in Namu Tech's long position.| ATON vs. Hanjoo Light Metal | ATON vs. Kukil Metal Co | ATON vs. Lake Materials Co | ATON vs. Samsung Publishing Co |
| Namu Tech vs. Shinhan Inverse Copper | Namu Tech vs. EBEST Investment Securities | Namu Tech vs. Kbi Metal Co | Namu Tech vs. Korea Investment Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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