Correlation Between Atinum Investment and Samyoung M

Can any of the company-specific risk be diversified away by investing in both Atinum Investment and Samyoung M 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 Samyoung M 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 Samyoung M Tek Co, you can compare the effects of market volatilities on Atinum Investment and Samyoung M 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 Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atinum Investment and Samyoung M.

Diversification Opportunities for Atinum Investment and Samyoung M

0.21

Correlation Coefficient

Atinum Investment  Samyoung M

Modest diversification

The 3 months correlation between Atinum and Samyoung is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Atinum Investment Co and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek 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 Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Atinum Investment i.e., Atinum Investment and Samyoung M go up and down completely randomly.

Pair Corralation between Atinum Investment and Samyoung M

Assuming the 90 days trading horizon Atinum Investment Co is expected to generate 1.42 times more return on investment than Samyoung M. However, Atinum Investment is 1.42 times more volatile than Samyoung M Tek Co. It trades about 0.02 of its potential returns per unit of risk. Samyoung M Tek Co is currently generating about -0.01 per unit of risk. If you would invest  231,000  in Atinum Investment Co on September 15, 2024 and sell it today you would lose (500.00) from holding Atinum Investment Co or give up 0.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Atinum Investment Co  vs.  Samyoung M Tek Co

Atinum Investment

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atinum Investment Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Samyoung M Tek

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samyoung M Tek Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Samyoung M is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atinum Investment and Samyoung M

The main advantage of trading using opposite Atinum Investment and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atinum Investment position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.

The idea behind Atinum Investment Co and Samyoung M Tek 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.