Correlation Between HB Technology and Adaptive Plasma
Can any of the company-specific risk be diversified away by investing in both HB Technology 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 HB Technology and Adaptive Plasma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HB Technology TD and Adaptive Plasma Technology, you can compare the effects of market volatilities on HB Technology 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 HB Technology with a short position of Adaptive Plasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Adaptive Plasma.
Diversification Opportunities for HB Technology and Adaptive Plasma
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 078150 and Adaptive is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD 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 HB Technology 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 HB Technology TD 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 HB Technology i.e., HB Technology and Adaptive Plasma go up and down completely randomly.
Pair Corralation between HB Technology and Adaptive Plasma
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.32 times more return on investment than Adaptive Plasma. However, HB Technology is 1.32 times more volatile than Adaptive Plasma Technology. It trades about 0.37 of its potential returns per unit of risk. Adaptive Plasma Technology is currently generating about 0.26 per unit of risk. If you would invest 192,300 in HB Technology TD on October 28, 2024 and sell it today you would earn a total of 56,200 from holding HB Technology TD or generate 29.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Adaptive Plasma Technology
Performance |
| Timeline |
| HB Technology TD |
| Adaptive Plasma Tech |
HB Technology and Adaptive Plasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Adaptive Plasma
The main advantage of trading using opposite HB Technology and Adaptive Plasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology 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.| HB Technology vs. Adaptive Plasma Technology | HB Technology vs. NewFlex Technology Co | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd |
| Adaptive Plasma vs. MEDIANA CoLtd | Adaptive Plasma vs. Namhwa Industrial Co | Adaptive Plasma vs. Tamul Multimedia Co | Adaptive Plasma vs. Korea Industrial Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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