Correlation Between ATON and Alchera
Can any of the company-specific risk be diversified away by investing in both ATON and Alchera 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 Alchera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATON Inc and Alchera, you can compare the effects of market volatilities on ATON and Alchera 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 Alchera. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATON and Alchera.
Diversification Opportunities for ATON and Alchera
Excellent diversification
The 3 months correlation between ATON and Alchera is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ATON Inc and Alchera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alchera 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 Alchera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alchera has no effect on the direction of ATON i.e., ATON and Alchera go up and down completely randomly.
Pair Corralation between ATON and Alchera
Assuming the 90 days trading horizon ATON Inc is expected to generate 0.57 times more return on investment than Alchera. However, ATON Inc is 1.75 times less risky than Alchera. It trades about 0.01 of its potential returns per unit of risk. Alchera is currently generating about -0.06 per unit of risk. If you would invest 540,439 in ATON Inc on September 1, 2024 and sell it today you would lose (19,439) from holding ATON Inc or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.2% |
| Values | Daily Returns |
ATON Inc vs. Alchera
Performance |
| Timeline |
| ATON Inc |
| Alchera |
ATON and Alchera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATON and Alchera
The main advantage of trading using opposite ATON and Alchera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATON position performs unexpectedly, Alchera 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 Alchera will offset losses from the drop in Alchera's long position.| ATON vs. Devsisters corporation | ATON vs. Konan Technology | ATON vs. Nice Information Telecommunication | ATON vs. InfoBank |
| Alchera vs. Golden Bridge Investment | Alchera vs. Sam Yang Foods | Alchera vs. FOODWELL Co | Alchera vs. Asiana Airlines |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |