Correlation Between Sungwoo Techron and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Sungwoo Techron and Atinum Investment 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 Sungwoo Techron and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungwoo Techron CoLtd and Atinum Investment Co, you can compare the effects of market volatilities on Sungwoo Techron and Atinum Investment 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 Sungwoo Techron with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungwoo Techron and Atinum Investment.
Diversification Opportunities for Sungwoo Techron and Atinum Investment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sungwoo and Atinum is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sungwoo Techron CoLtd and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Sungwoo Techron 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 Sungwoo Techron CoLtd are associated (or correlated) with Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Sungwoo Techron i.e., Sungwoo Techron and Atinum Investment go up and down completely randomly.
Pair Corralation between Sungwoo Techron and Atinum Investment
Assuming the 90 days trading horizon Sungwoo Techron CoLtd is expected to under-perform the Atinum Investment. But the stock apears to be less risky and, when comparing its historical volatility, Sungwoo Techron CoLtd is 1.09 times less risky than Atinum Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Atinum Investment Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 254,766 in Atinum Investment Co on October 4, 2024 and sell it today you would lose (38,766) from holding Atinum Investment Co or give up 15.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sungwoo Techron CoLtd vs. Atinum Investment Co
Performance |
Timeline |
Sungwoo Techron CoLtd |
Atinum Investment |
Sungwoo Techron and Atinum Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sungwoo Techron and Atinum Investment
The main advantage of trading using opposite Sungwoo Techron and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungwoo Techron position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.Sungwoo Techron vs. Cuckoo Homesys Co | Sungwoo Techron vs. ITM Semiconductor Co | Sungwoo Techron vs. Cots Technology Co | Sungwoo Techron vs. ABOV Semiconductor Co |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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