Correlation Between Adaptive Plasma and Humax
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and Humax 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 Humax 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 Humax Co, you can compare the effects of market volatilities on Adaptive Plasma and Humax 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 Humax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and Humax.
Diversification Opportunities for Adaptive Plasma and Humax
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptive and Humax is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and Humax Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax 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 Humax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and Humax go up and down completely randomly.
Pair Corralation between Adaptive Plasma and Humax
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to generate 1.54 times more return on investment than Humax. However, Adaptive Plasma is 1.54 times more volatile than Humax Co. It trades about 0.11 of its potential returns per unit of risk. Humax Co is currently generating about 0.08 per unit of risk. If you would invest 700,000 in Adaptive Plasma Technology on November 3, 2024 and sell it today you would earn a total of 40,000 from holding Adaptive Plasma Technology or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. Humax Co
Performance |
| Timeline |
| Adaptive Plasma Tech |
| Humax |
Adaptive Plasma and Humax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and Humax
The main advantage of trading using opposite Adaptive Plasma and Humax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, Humax 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 Humax will offset losses from the drop in Humax's long position.| Adaptive Plasma vs. CKH Food Health | Adaptive Plasma vs. Daejung Chemicals Metals | Adaptive Plasma vs. Sempio Foods Co | Adaptive Plasma vs. Shinsegae Food |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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