Correlation Between Adaptive Plasma and Lotte Chilsung
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and Lotte Chilsung 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 Adaptive Plasma and Lotte Chilsung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adaptive Plasma Technology and Lotte Chilsung Beverage, you can compare the effects of market volatilities on Adaptive Plasma and Lotte Chilsung 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 Adaptive Plasma with a short position of Lotte Chilsung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and Lotte Chilsung.
Diversification Opportunities for Adaptive Plasma and Lotte Chilsung
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptive and Lotte is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and Lotte Chilsung Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Chilsung Beverage and Adaptive Plasma 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 Adaptive Plasma Technology are associated (or correlated) with Lotte Chilsung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Chilsung Beverage has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and Lotte Chilsung go up and down completely randomly.
Pair Corralation between Adaptive Plasma and Lotte Chilsung
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to under-perform the Lotte Chilsung. In addition to that, Adaptive Plasma is 1.95 times more volatile than Lotte Chilsung Beverage. It trades about -0.02 of its total potential returns per unit of risk. Lotte Chilsung Beverage is currently generating about -0.02 per unit of volatility. If you would invest 15,321,000 in Lotte Chilsung Beverage on August 24, 2024 and sell it today you would lose (3,321,000) from holding Lotte Chilsung Beverage or give up 21.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. Lotte Chilsung Beverage
Performance |
| Timeline |
| Adaptive Plasma Tech |
| Lotte Chilsung Beverage |
Adaptive Plasma and Lotte Chilsung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and Lotte Chilsung
The main advantage of trading using opposite Adaptive Plasma and Lotte Chilsung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, Lotte Chilsung 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 Lotte Chilsung will offset losses from the drop in Lotte Chilsung's long position.| Adaptive Plasma vs. SK Hynix | Adaptive Plasma vs. People Technology | Adaptive Plasma vs. SIMMTECH Co | Adaptive Plasma vs. Haesung DS Co |
| Lotte Chilsung vs. AptaBio Therapeutics | Lotte Chilsung vs. Daewoo SBI SPAC | Lotte Chilsung vs. Dream Security co | Lotte Chilsung vs. Microfriend |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |