Correlation Between Atinum Investment and Kukdong Oil
Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Kukdong Oil 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 Kukdong Oil 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 Kukdong Oil Chemicals, you can compare the effects of market volatilities on Atinum Investment and Kukdong Oil 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 Kukdong Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Kukdong Oil.
Diversification Opportunities for Atinum Investment and Kukdong Oil
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atinum and Kukdong is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Kukdong Oil Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukdong Oil Chemicals 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 Kukdong Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukdong Oil Chemicals has no effect on the direction of Atinum Investment i.e., Atinum Investment and Kukdong Oil go up and down completely randomly.
Pair Corralation between Atinum Investment and Kukdong Oil
Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 2.22 times more return on investment than Kukdong Oil. However, Atinum Investment is 2.22 times more volatile than Kukdong Oil Chemicals. It trades about 0.06 of its potential returns per unit of risk. Kukdong Oil Chemicals is currently generating about -0.06 per unit of risk. If you would invest 230,000 in Atinum Investment Co on September 13, 2024 and sell it today you would earn a total of 21,000 from holding Atinum Investment Co or generate 9.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atinum Investment Co vs. Kukdong Oil Chemicals
Performance |
Timeline |
Atinum Investment |
Kukdong Oil Chemicals |
Atinum Investment and Kukdong Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atinum Investment and Kukdong Oil
The main advantage of trading using opposite Atinum Investment and Kukdong Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Kukdong Oil 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 Kukdong Oil will offset losses from the drop in Kukdong Oil's long position.Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group | Atinum Investment vs. Hana Financial | Atinum Investment vs. Woori Financial Group |
Kukdong Oil vs. Samsung Electronics Co | Kukdong Oil vs. Samsung Electronics Co | Kukdong Oil vs. SK Hynix | Kukdong Oil vs. POSCO Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |