Correlation Between Nobland International and Atinum Investment

Can any of the company-specific risk be diversified away by investing in both Nobland International 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 Nobland International and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nobland International and Atinum Investment Co, you can compare the effects of market volatilities on Nobland International 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 Nobland International with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nobland International and Atinum Investment.

Diversification Opportunities for Nobland International and Atinum Investment

-0.63

Correlation Coefficient

Nobland International  Atinum Investment

Excellent diversification

The 3 months correlation between Nobland and Atinum is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nobland International and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Nobland International 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 Nobland International 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 Nobland International i.e., Nobland International and Atinum Investment go up and down completely randomly.

Pair Corralation between Nobland International and Atinum Investment

Assuming the 90 days trading horizon Nobland International is expected to generate 1.67 times more return on investment than Atinum Investment. However, Nobland International is 1.67 times more volatile than Atinum Investment Co. It trades about 0.05 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.01 per unit of risk. If you would invest  729,500  in Nobland International on October 6, 2024 and sell it today you would earn a total of  61,500  from holding Nobland International or generate 8.43% return on investment over 90 days.

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

Nobland International  vs.  Atinum Investment Co

Nobland International

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nobland International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nobland International sustained solid returns over the last few months and may actually be approaching a breakup point.

Atinum Investment

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Nobland International and Atinum Investment

The main advantage of trading using opposite Nobland International and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nobland International 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.

The idea behind Nobland International and Atinum Investment Co 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.