Correlation Between Lindeman Asia and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Lindeman Asia 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 Lindeman Asia and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindeman Asia Investment and Atinum Investment Co, you can compare the effects of market volatilities on Lindeman Asia 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 Lindeman Asia with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindeman Asia and Atinum Investment.
Diversification Opportunities for Lindeman Asia and Atinum Investment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindeman and Atinum is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lindeman Asia Investment and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Lindeman Asia 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 Lindeman Asia Investment 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 Lindeman Asia i.e., Lindeman Asia and Atinum Investment go up and down completely randomly.
Pair Corralation between Lindeman Asia and Atinum Investment
Assuming the 90 days trading horizon Lindeman Asia Investment is expected to generate 5.65 times more return on investment than Atinum Investment. However, Lindeman Asia is 5.65 times more volatile than Atinum Investment Co. It trades about 0.19 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.31 per unit of risk. If you would invest 407,000 in Lindeman Asia Investment on November 27, 2024 and sell it today you would earn a total of 76,000 from holding Lindeman Asia Investment or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindeman Asia Investment vs. Atinum Investment Co
Performance |
| Timeline |
| Lindeman Asia Investment |
| Atinum Investment |
Lindeman Asia and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindeman Asia and Atinum Investment
The main advantage of trading using opposite Lindeman Asia and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindeman Asia 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.| Lindeman Asia vs. Nh Investment And | Lindeman Asia vs. Hanwha InvestmentSecurities Co | Lindeman Asia vs. Company K Partners | Lindeman Asia vs. FnGuide |
| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Seoul Food Industrial | Atinum Investment vs. ADTechnology CoLtd | Atinum Investment vs. Spolytech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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