Correlation Between SK Bioscience and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both SK Bioscience 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 SK Bioscience and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Bioscience Co and Atinum Investment Co, you can compare the effects of market volatilities on SK Bioscience 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 SK Bioscience with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Bioscience and Atinum Investment.
Diversification Opportunities for SK Bioscience and Atinum Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 302440 and Atinum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Bioscience Co and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and SK Bioscience 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 SK Bioscience Co 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 SK Bioscience i.e., SK Bioscience and Atinum Investment go up and down completely randomly.
Pair Corralation between SK Bioscience and Atinum Investment
Assuming the 90 days trading horizon SK Bioscience Co is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, SK Bioscience Co is 1.02 times less risky than Atinum Investment. The stock trades about -0.14 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 250,000 in Atinum Investment Co on August 29, 2024 and sell it today you would lose (10,500) from holding Atinum Investment Co or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Bioscience Co vs. Atinum Investment Co
Performance |
| Timeline |
| SK Bioscience |
| Atinum Investment |
SK Bioscience and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Bioscience and Atinum Investment
The main advantage of trading using opposite SK Bioscience and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Bioscience 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.| SK Bioscience vs. Hankukpackage Co | SK Bioscience vs. Tae Kyung Chemical | SK Bioscience vs. Formetal Co | SK Bioscience vs. Daedong Metals Co |
| Atinum Investment vs. Korea New Network | Atinum Investment vs. Dong A Eltek | Atinum Investment vs. Dreamus Company | Atinum Investment vs. SK Bioscience 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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