Correlation Between Atinum Investment and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Phoenix Materials 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 Atinum Investment and Phoenix Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atinum Investment Co and Phoenix Materials Co, you can compare the effects of market volatilities on Atinum Investment and Phoenix Materials 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 Atinum Investment with a short position of Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Phoenix Materials.
Diversification Opportunities for Atinum Investment and Phoenix Materials
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and Phoenix is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials and Atinum Investment 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 Atinum Investment Co are associated (or correlated) with Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of Atinum Investment i.e., Atinum Investment and Phoenix Materials go up and down completely randomly.
Pair Corralation between Atinum Investment and Phoenix Materials
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 1.03 times more return on investment than Phoenix Materials. However, Atinum Investment is 1.03 times more volatile than Phoenix Materials Co. It trades about -0.02 of its potential returns per unit of risk. Phoenix Materials Co is currently generating about -0.09 per unit of risk. If you would invest 233,024 in Atinum Investment Co on September 29, 2024 and sell it today you would lose (17,024) from holding Atinum Investment Co or give up 7.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atinum Investment Co vs. Phoenix Materials Co
Performance |
Timeline |
Atinum Investment |
Phoenix Materials |
Atinum Investment and Phoenix Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atinum Investment and Phoenix Materials
The main advantage of trading using opposite Atinum Investment and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' long position.Atinum Investment vs. Stic Investments | Atinum Investment vs. Eugene Investment Securities | Atinum Investment vs. Seoul Food Industrial | Atinum Investment vs. Shinsegae Food |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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