Correlation Between Atinum Investment and SIMMTECH
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and SIMMTECH 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 SIMMTECH 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 SIMMTECH Co, you can compare the effects of market volatilities on Atinum Investment and SIMMTECH 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 SIMMTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and SIMMTECH.
Diversification Opportunities for Atinum Investment and SIMMTECH
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atinum and SIMMTECH is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and SIMMTECH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMMTECH 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 SIMMTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMMTECH has no effect on the direction of Atinum Investment i.e., Atinum Investment and SIMMTECH go up and down completely randomly.
Pair Corralation between Atinum Investment and SIMMTECH
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 0.96 times more return on investment than SIMMTECH. However, Atinum Investment Co is 1.04 times less risky than SIMMTECH. It trades about 0.0 of its potential returns per unit of risk. SIMMTECH Co is currently generating about -0.05 per unit of risk. If you would invest 259,308 in Atinum Investment Co on October 10, 2024 and sell it today you would lose (34,308) from holding Atinum Investment Co or give up 13.23% 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. SIMMTECH Co
Performance |
Timeline |
Atinum Investment |
SIMMTECH |
Atinum Investment and SIMMTECH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atinum Investment and SIMMTECH
The main advantage of trading using opposite Atinum Investment and SIMMTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, SIMMTECH 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 SIMMTECH will offset losses from the drop in SIMMTECH's long position.Atinum Investment vs. Dongwoo Farm To | Atinum Investment vs. Seohee Construction Co | Atinum Investment vs. LG Display Co | Atinum Investment vs. Inzi Display CoLtd |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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