Correlation Between Adaptive Plasma and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Adaptive Plasma and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and Duksan Hi.
Diversification Opportunities for Adaptive Plasma and Duksan Hi
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Adaptive and Duksan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and Duksan Hi go up and down completely randomly.
Pair Corralation between Adaptive Plasma and Duksan Hi
Assuming the 90 days trading horizon Adaptive Plasma is expected to generate 1.16 times less return on investment than Duksan Hi. In addition to that, Adaptive Plasma is 1.24 times more volatile than Duksan Hi Metal. It trades about 0.27 of its total potential returns per unit of risk. Duksan Hi Metal is currently generating about 0.39 per unit of volatility. 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 |
Adaptive Plasma Technology vs. Duksan Hi Metal
Performance |
| Timeline |
| Adaptive Plasma Tech |
| Duksan Hi Metal |
Adaptive Plasma and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and Duksan Hi
The main advantage of trading using opposite Adaptive Plasma and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Adaptive Plasma vs. Grand Korea Leisure | Adaptive Plasma vs. Youngsin Metal Industrial | Adaptive Plasma vs. Sangsin Energy Display | Adaptive Plasma vs. Duksan Hi Metal |
| Duksan Hi vs. Jeju Bank | Duksan Hi vs. Adaptive Plasma Technology | Duksan Hi vs. Korea Shipbuilding Offshore | Duksan Hi vs. InfoBank |
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.
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