Correlation Between Adaptive Plasma and KOSES CoLtd
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and KOSES CoLtd 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 KOSES CoLtd 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 KOSES CoLtd, you can compare the effects of market volatilities on Adaptive Plasma and KOSES CoLtd 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 KOSES CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and KOSES CoLtd.
Diversification Opportunities for Adaptive Plasma and KOSES CoLtd
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptive and KOSES is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and KOSES CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOSES CoLtd 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 KOSES CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOSES CoLtd has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and KOSES CoLtd go up and down completely randomly.
Pair Corralation between Adaptive Plasma and KOSES CoLtd
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to generate 0.93 times more return on investment than KOSES CoLtd. However, Adaptive Plasma Technology is 1.08 times less risky than KOSES CoLtd. It trades about -0.02 of its potential returns per unit of risk. KOSES CoLtd is currently generating about -0.06 per unit of risk. If you would invest 1,390,000 in Adaptive Plasma Technology on December 2, 2024 and sell it today you would lose (436,000) from holding Adaptive Plasma Technology or give up 31.37% 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. KOSES CoLtd
Performance |
| Timeline |
| Adaptive Plasma Tech |
| KOSES CoLtd |
Adaptive Plasma and KOSES CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and KOSES CoLtd
The main advantage of trading using opposite Adaptive Plasma and KOSES CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, KOSES CoLtd 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 KOSES CoLtd will offset losses from the drop in KOSES CoLtd's long position.| Adaptive Plasma vs. Sung Bo Chemicals | Adaptive Plasma vs. MS Autotech CoLtd | Adaptive Plasma vs. Cots Technology Co | Adaptive Plasma vs. Wonbang Tech Co |
| KOSES CoLtd vs. Dgb Financial | KOSES CoLtd vs. Lotte Chilsung Beverage | KOSES CoLtd vs. Koryo Credit Information | KOSES CoLtd vs. Incar Financial Service |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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