Correlation Between Duksan Hi and Adaptive Plasma
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Adaptive Plasma 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 Duksan Hi and Adaptive Plasma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Adaptive Plasma Technology, you can compare the effects of market volatilities on Duksan Hi and Adaptive Plasma 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 Duksan Hi with a short position of Adaptive Plasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Adaptive Plasma.
Diversification Opportunities for Duksan Hi and Adaptive Plasma
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and Adaptive is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Adaptive Plasma Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptive Plasma Tech and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Adaptive Plasma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptive Plasma Tech has no effect on the direction of Duksan Hi i.e., Duksan Hi and Adaptive Plasma go up and down completely randomly.
Pair Corralation between Duksan Hi and Adaptive Plasma
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 0.8 times more return on investment than Adaptive Plasma. However, Duksan Hi Metal is 1.24 times less risky than Adaptive Plasma. It trades about 0.39 of its potential returns per unit of risk. Adaptive Plasma Technology is currently generating about 0.27 per unit of risk. If you would invest 341,500 in Duksan Hi Metal on October 11, 2024 and sell it today you would earn a total of 72,000 from holding Duksan Hi Metal or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Adaptive Plasma Technology
Performance |
| Timeline |
| Duksan Hi Metal |
| Adaptive Plasma Tech |
Duksan Hi and Adaptive Plasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Adaptive Plasma
The main advantage of trading using opposite Duksan Hi and Adaptive Plasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Adaptive Plasma 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 Adaptive Plasma will offset losses from the drop in Adaptive Plasma's long position.| Duksan Hi vs. Jeju Bank | Duksan Hi vs. Adaptive Plasma Technology | Duksan Hi vs. Korea Shipbuilding Offshore | Duksan Hi vs. InfoBank |
| Adaptive Plasma vs. Grand Korea Leisure | Adaptive Plasma vs. Youngsin Metal Industrial | Adaptive Plasma vs. Sangsin Energy Display | Adaptive Plasma vs. Duksan Hi Metal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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