Correlation Between POSCO Holdings and Atlantic Union
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Atlantic Union 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 POSCO Holdings and Atlantic Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Atlantic Union Bankshares, you can compare the effects of market volatilities on POSCO Holdings and Atlantic Union 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 POSCO Holdings with a short position of Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Atlantic Union.
Diversification Opportunities for POSCO Holdings and Atlantic Union
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POSCO and Atlantic is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Atlantic Union go up and down completely randomly.
Pair Corralation between POSCO Holdings and Atlantic Union
Considering the 90-day investment horizon POSCO Holdings is expected to generate 1.58 times less return on investment than Atlantic Union. In addition to that, POSCO Holdings is 1.36 times more volatile than Atlantic Union Bankshares. It trades about 0.01 of its total potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.03 per unit of volatility. If you would invest 2,143 in Atlantic Union Bankshares on September 2, 2024 and sell it today you would earn a total of 421.00 from holding Atlantic Union Bankshares or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Atlantic Union Bankshares
Performance |
| Timeline |
| POSCO Holdings |
| Atlantic Union Bankshares |
POSCO Holdings and Atlantic Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Atlantic Union
The main advantage of trading using opposite POSCO Holdings and Atlantic Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Atlantic Union 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 Atlantic Union will offset losses from the drop in Atlantic Union's long position.| POSCO Holdings vs. Olympic Steel | POSCO Holdings vs. Universal Stainless Alloy | POSCO Holdings vs. Outokumpu Oyj ADR | POSCO Holdings vs. Ternium SA ADR |
| Atlantic Union vs. The Mosaic | Atlantic Union vs. Supercom | Atlantic Union vs. Avient Corp | Atlantic Union vs. Luxfer Holdings PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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