Correlation Between Adaptive Plasma and KT Submarine
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and KT Submarine 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 KT Submarine 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 KT Submarine Telecom, you can compare the effects of market volatilities on Adaptive Plasma and KT Submarine 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 KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and KT Submarine.
Diversification Opportunities for Adaptive Plasma and KT Submarine
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptive and 060370 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and KT Submarine Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine Telecom 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 KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine Telecom has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and KT Submarine go up and down completely randomly.
Pair Corralation between Adaptive Plasma and KT Submarine
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to under-perform the KT Submarine. But the stock apears to be less risky and, when comparing its historical volatility, Adaptive Plasma Technology is 1.03 times less risky than KT Submarine. The stock trades about -0.01 of its potential returns per unit of risk. The KT Submarine Telecom is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 498,035 in KT Submarine Telecom on September 14, 2024 and sell it today you would earn a total of 924,965 from holding KT Submarine Telecom or generate 185.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.63% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. KT Submarine Telecom
Performance |
| Timeline |
| Adaptive Plasma Tech |
| KT Submarine Telecom |
Adaptive Plasma and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and KT Submarine
The main advantage of trading using opposite Adaptive Plasma and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| Adaptive Plasma vs. SK Hynix | Adaptive Plasma vs. People Technology | Adaptive Plasma vs. Hana Materials | Adaptive Plasma vs. SIMMTECH Co |
| KT Submarine vs. Samsung Electronics Co | KT Submarine vs. Samsung Electronics Co | KT Submarine vs. SK Hynix | KT Submarine vs. POSCO Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |