Correlation Between Atinum Investment and IC Technology
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and IC Technology 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 IC Technology 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 IC Technology Co, you can compare the effects of market volatilities on Atinum Investment and IC Technology 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 IC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and IC Technology.
Diversification Opportunities for Atinum Investment and IC Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atinum and 052860 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and IC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IC Technology 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 IC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IC Technology has no effect on the direction of Atinum Investment i.e., Atinum Investment and IC Technology go up and down completely randomly.
Pair Corralation between Atinum Investment and IC Technology
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.8 times more return on investment than IC Technology. However, Atinum Investment Co is 1.25 times less risky than IC Technology. It trades about 0.01 of its potential returns per unit of risk. IC Technology Co is currently generating about -0.02 per unit of risk. If you would invest 224,794 in Atinum Investment Co on October 22, 2024 and sell it today you would lose (8,294) from holding Atinum Investment Co or give up 3.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atinum Investment Co vs. IC Technology Co
Performance |
Timeline |
Atinum Investment |
IC Technology |
Atinum Investment and IC Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atinum Investment and IC Technology
The main advantage of trading using opposite Atinum Investment and IC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, IC Technology 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 IC Technology will offset losses from the drop in IC Technology's long position.Atinum Investment vs. BGF Retail Co | Atinum Investment vs. Tuksu Engineering ConstructionLtd | Atinum Investment vs. Sam Yang Foods | Atinum Investment vs. Mgame Corp |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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