Correlation Between Cheryong Industrial and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Cheryong Industrial 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 Cheryong Industrial and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheryong Industrial CoLtd and Atinum Investment Co, you can compare the effects of market volatilities on Cheryong Industrial 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 Cheryong Industrial with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheryong Industrial and Atinum Investment.
Diversification Opportunities for Cheryong Industrial and Atinum Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cheryong and Atinum is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cheryong Industrial 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 Cheryong Industrial 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 Cheryong Industrial 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 Cheryong Industrial i.e., Cheryong Industrial and Atinum Investment go up and down completely randomly.
Pair Corralation between Cheryong Industrial and Atinum Investment
Assuming the 90 days trading horizon Cheryong Industrial CoLtd is expected to under-perform the Atinum Investment. In addition to that, Cheryong Industrial is 1.34 times more volatile than Atinum Investment Co. It trades about -0.1 of its total potential returns per unit of risk. Atinum Investment Co is currently generating about -0.03 per unit of volatility. If you would invest 269,000 in Atinum Investment Co on September 25, 2024 and sell it today you would lose (42,000) from holding Atinum Investment Co or give up 15.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cheryong Industrial CoLtd vs. Atinum Investment Co
Performance |
Timeline |
Cheryong Industrial CoLtd |
Atinum Investment |
Cheryong Industrial and Atinum Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cheryong Industrial and Atinum Investment
The main advantage of trading using opposite Cheryong Industrial and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheryong Industrial 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.Cheryong Industrial vs. Daishin Information Communications | Cheryong Industrial vs. CU Tech Corp | Cheryong Industrial vs. Iljin Display | Cheryong Industrial vs. Amogreentech 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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