Correlation Between Atesco Industrial and KIM GROWTH

Can any of the company-specific risk be diversified away by investing in both Atesco Industrial and KIM GROWTH 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 Atesco Industrial and KIM GROWTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atesco Industrial Cartering and KIM GROWTH VN30, you can compare the effects of market volatilities on Atesco Industrial and KIM GROWTH 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 Atesco Industrial with a short position of KIM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atesco Industrial and KIM GROWTH.

Diversification Opportunities for Atesco Industrial and KIM GROWTH

0.65

Correlation Coefficient

Atesco Industrial  KIM GROWTH

Poor diversification

The 3 months correlation between Atesco and KIM is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Atesco Industrial Cartering and KIM GROWTH VN30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM GROWTH VN30 and Atesco 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 Atesco Industrial Cartering are associated (or correlated) with KIM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM GROWTH VN30 has no effect on the direction of Atesco Industrial i.e., Atesco Industrial and KIM GROWTH go up and down completely randomly.

Pair Corralation between Atesco Industrial and KIM GROWTH

Assuming the 90 days trading horizon Atesco Industrial Cartering is expected to under-perform the KIM GROWTH. In addition to that, Atesco Industrial is 7.8 times more volatile than KIM GROWTH VN30. It trades about -0.06 of its total potential returns per unit of risk. KIM GROWTH VN30 is currently generating about 0.08 per unit of volatility. If you would invest  858,000  in KIM GROWTH VN30 on September 14, 2024 and sell it today you would earn a total of  34,000  from holding KIM GROWTH VN30 or generate 3.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	68.33%
Values	Daily Returns

Atesco Industrial Cartering  vs.  KIM GROWTH VN30

Atesco Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atesco Industrial Cartering has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

KIM GROWTH VN30

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KIM GROWTH VN30 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, KIM GROWTH is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atesco Industrial and KIM GROWTH

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

The idea behind Atesco Industrial Cartering and KIM GROWTH VN30 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.