Correlation Between Atinum Investment and HJ ShipBuilding

Can any of the company-specific risk be diversified away by investing in both Atinum Investment and HJ ShipBuilding 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 HJ ShipBuilding 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 HJ ShipBuilding Construction, you can compare the effects of market volatilities on Atinum Investment and HJ ShipBuilding 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 HJ ShipBuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and HJ ShipBuilding.

Diversification Opportunities for Atinum Investment and HJ ShipBuilding

-0.29

Correlation Coefficient

Atinum Investment  HJ ShipBuilding

Very good diversification

The 3 months correlation between Atinum and 097230 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and HJ ShipBuilding Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJ ShipBuilding Cons 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 HJ ShipBuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJ ShipBuilding Cons has no effect on the direction of Atinum Investment i.e., Atinum Investment and HJ ShipBuilding go up and down completely randomly.

Pair Corralation between Atinum Investment and HJ ShipBuilding

Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.24 times more return on investment than HJ ShipBuilding. However, Atinum Investment Co is 4.21 times less risky than HJ ShipBuilding. It trades about 0.14 of its potential returns per unit of risk. HJ ShipBuilding Construction is currently generating about 0.02 per unit of risk. If you would invest  209,000  in Atinum Investment Co on December 2, 2024 and sell it today you would earn a total of  6,500  from holding Atinum Investment Co or generate 3.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atinum Investment Co  vs.  HJ ShipBuilding Construction

Atinum Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atinum Investment Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Atinum Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HJ ShipBuilding Cons

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HJ ShipBuilding Construction are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, HJ ShipBuilding sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atinum Investment and HJ ShipBuilding

The main advantage of trading using opposite Atinum Investment and HJ ShipBuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, HJ ShipBuilding 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 HJ ShipBuilding will offset losses from the drop in HJ ShipBuilding's long position.

The idea behind Atinum Investment Co and HJ ShipBuilding Construction pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..