Correlation Between Adaptive Plasma and Shinhan WTI
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and Shinhan WTI 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 Shinhan WTI 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 Shinhan WTI Futures, you can compare the effects of market volatilities on Adaptive Plasma and Shinhan WTI 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 Shinhan WTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and Shinhan WTI.
Diversification Opportunities for Adaptive Plasma and Shinhan WTI
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Adaptive and Shinhan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and Shinhan WTI Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan WTI Futures 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 Shinhan WTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan WTI Futures has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and Shinhan WTI go up and down completely randomly.
Pair Corralation between Adaptive Plasma and Shinhan WTI
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to generate 2.59 times more return on investment than Shinhan WTI. However, Adaptive Plasma is 2.59 times more volatile than Shinhan WTI Futures. It trades about 0.13 of its potential returns per unit of risk. Shinhan WTI Futures is currently generating about 0.15 per unit of risk. If you would invest 694,000 in Adaptive Plasma Technology on October 24, 2024 and sell it today you would earn a total of 126,000 from holding Adaptive Plasma Technology or generate 18.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptive Plasma Technology vs. Shinhan WTI Futures
Performance |
| Timeline |
| Adaptive Plasma Tech |
| Shinhan WTI Futures |
Adaptive Plasma and Shinhan WTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and Shinhan WTI
The main advantage of trading using opposite Adaptive Plasma and Shinhan WTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, Shinhan WTI 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 Shinhan WTI will offset losses from the drop in Shinhan WTI's long position.| Adaptive Plasma vs. SK Hynix | Adaptive Plasma vs. LX Semicon Co | Adaptive Plasma vs. Tokai Carbon Korea | Adaptive Plasma vs. People Technology |
| Shinhan WTI vs. Dong A Steel Technology | Shinhan WTI vs. AeroSpace Technology of | Shinhan WTI vs. Hwasung Industrial Co | Shinhan WTI vs. Myoung Shin Industrial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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