Correlation Between THiRA-UTECH and ATON
Can any of the company-specific risk be diversified away by investing in both THiRA-UTECH and ATON 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 THiRA-UTECH and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THiRA UTECH LTD and ATON Inc, you can compare the effects of market volatilities on THiRA-UTECH and ATON 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 THiRA-UTECH with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of THiRA-UTECH and ATON.
Diversification Opportunities for THiRA-UTECH and ATON
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THiRA-UTECH and ATON is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding THiRA UTECH LTD and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and THiRA-UTECH 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 THiRA UTECH LTD are associated (or correlated) with ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of THiRA-UTECH i.e., THiRA-UTECH and ATON go up and down completely randomly.
Pair Corralation between THiRA-UTECH and ATON
Assuming the 90 days trading horizon THiRA UTECH LTD is expected to under-perform the ATON. But the stock apears to be less risky and, when comparing its historical volatility, THiRA UTECH LTD is 2.61 times less risky than ATON. The stock trades about -0.13 of its potential returns per unit of risk. The ATON Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 453,000 in ATON Inc on September 15, 2024 and sell it today you would earn a total of 177,000 from holding ATON Inc or generate 39.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THiRA UTECH LTD vs. ATON Inc
Performance |
| Timeline |
| THiRA UTECH LTD |
| ATON Inc |
THiRA-UTECH and ATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THiRA-UTECH and ATON
The main advantage of trading using opposite THiRA-UTECH and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THiRA-UTECH position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.| THiRA-UTECH vs. Kakao Games Corp | THiRA-UTECH vs. Devsisters corporation | THiRA-UTECH vs. Konan Technology | THiRA-UTECH vs. Nice Information Telecommunication |
| ATON vs. Kakao Games Corp | ATON vs. Devsisters corporation | ATON vs. Konan Technology | ATON vs. Nice Information Telecommunication |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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