Correlation Between Adaptive Plasma and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and Sangsin Energy 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 Sangsin Energy 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 Sangsin Energy Display, you can compare the effects of market volatilities on Adaptive Plasma and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and Sangsin Energy.
Diversification Opportunities for Adaptive Plasma and Sangsin Energy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adaptive and Sangsin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and Sangsin Energy go up and down completely randomly.
Pair Corralation between Adaptive Plasma and Sangsin Energy
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to generate 1.21 times more return on investment than Sangsin Energy. However, Adaptive Plasma is 1.21 times more volatile than Sangsin Energy Display. It trades about -0.06 of its potential returns per unit of risk. Sangsin Energy Display is currently generating about -0.12 per unit of risk. If you would invest 894,000 in Adaptive Plasma Technology on November 8, 2024 and sell it today you would lose (154,000) from holding Adaptive Plasma Technology or give up 17.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. Sangsin Energy Display
Performance |
| Timeline |
| Adaptive Plasma Tech |
| Sangsin Energy Display |
Adaptive Plasma and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and Sangsin Energy
The main advantage of trading using opposite Adaptive Plasma and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Adaptive Plasma vs. Kukdong Oil Chemicals | Adaptive Plasma vs. Automobile Pc | Adaptive Plasma vs. Korea Steel Co | Adaptive Plasma vs. Husteel |
| Sangsin Energy vs. DAEDUCK ELECTRONICS CoLtd | Sangsin Energy vs. Ssangyong Information Communication | Sangsin Energy vs. Daeduck Electronics Co | Sangsin Energy vs. Vissem Electronics 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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