Correlation Between Handok Clean and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Handok Clean 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 Handok Clean and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Handok Clean Tech and Atinum Investment Co, you can compare the effects of market volatilities on Handok Clean 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 Handok Clean with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handok Clean and Atinum Investment.
Diversification Opportunities for Handok Clean and Atinum Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Handok and Atinum is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Handok Clean Tech and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Handok Clean 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 Handok Clean Tech 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 Handok Clean i.e., Handok Clean and Atinum Investment go up and down completely randomly.
Pair Corralation between Handok Clean and Atinum Investment
Assuming the 90 days trading horizon Handok Clean Tech is expected to generate 0.41 times more return on investment than Atinum Investment. However, Handok Clean Tech is 2.43 times less risky than Atinum Investment. It trades about -0.43 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.26 per unit of risk. If you would invest 667,000 in Handok Clean Tech on September 12, 2024 and sell it today you would lose (84,000) from holding Handok Clean Tech or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handok Clean Tech vs. Atinum Investment Co
Performance |
| Timeline |
| Handok Clean Tech |
| Atinum Investment |
Handok Clean and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handok Clean and Atinum Investment
The main advantage of trading using opposite Handok Clean and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handok Clean 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.| Handok Clean vs. Vitzro Tech Co | Handok Clean vs. Shinsung Delta Tech | Handok Clean vs. Orbitech Co | Handok Clean vs. Korea Information Engineering |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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