Correlation Between Doosan Bobcat and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Doosan Bobcat 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 Doosan Bobcat and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan Bobcat and Atinum Investment Co, you can compare the effects of market volatilities on Doosan Bobcat 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 Doosan Bobcat with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Bobcat and Atinum Investment.
Diversification Opportunities for Doosan Bobcat and Atinum Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Doosan and Atinum is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Bobcat and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Doosan Bobcat 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 Doosan Bobcat 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 Doosan Bobcat i.e., Doosan Bobcat and Atinum Investment go up and down completely randomly.
Pair Corralation between Doosan Bobcat and Atinum Investment
Assuming the 90 days trading horizon Doosan Bobcat is expected to generate 2.0 times more return on investment than Atinum Investment. However, Doosan Bobcat is 2.0 times more volatile than Atinum Investment Co. It trades about 0.14 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.06 per unit of risk. If you would invest 4,190,000 in Doosan Bobcat on December 30, 2024 and sell it today you would earn a total of 920,000 from holding Doosan Bobcat or generate 21.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Doosan Bobcat vs. Atinum Investment Co
Performance |
Timeline |
Doosan Bobcat |
Atinum Investment |
Doosan Bobcat and Atinum Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Doosan Bobcat and Atinum Investment
The main advantage of trading using opposite Doosan Bobcat and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Bobcat 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.Doosan Bobcat vs. Kbi Metal Co | Doosan Bobcat vs. Kg Chemical | Doosan Bobcat vs. Tae Kyung Chemical | Doosan Bobcat vs. Hanwha Chemical Corp |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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