Correlation Between Adaptive Plasma and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Adaptive Plasma and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and BNK Financial.
Diversification Opportunities for Adaptive Plasma and BNK Financial
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adaptive and BNK is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and BNK Financial go up and down completely randomly.
Pair Corralation between Adaptive Plasma and BNK Financial
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to under-perform the BNK Financial. In addition to that, Adaptive Plasma is 1.87 times more volatile than BNK Financial Group. It trades about -0.07 of its total potential returns per unit of risk. BNK Financial Group is currently generating about 0.12 per unit of volatility. If you would invest 660,456 in BNK Financial Group on September 12, 2024 and sell it today you would earn a total of 434,544 from holding BNK Financial Group or generate 65.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. BNK Financial Group
Performance |
| Timeline |
| Adaptive Plasma Tech |
| BNK Financial Group |
Adaptive Plasma and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and BNK Financial
The main advantage of trading using opposite Adaptive Plasma and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Adaptive Plasma vs. Hankook Steel Co | Adaptive Plasma vs. J Steel Co | Adaptive Plasma vs. Moonbae Steel | Adaptive Plasma vs. LG Display Co |
| BNK Financial vs. KB Financial Group | BNK Financial vs. Shinhan Financial Group | BNK Financial vs. Hana Financial | BNK Financial vs. Woori Financial Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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