Correlation Between Adaptive Plasma and CKH Food
Can any of the company-specific risk be diversified away by investing in both Adaptive Plasma and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Adaptive Plasma and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptive Plasma and CKH Food.
Diversification Opportunities for Adaptive Plasma and CKH Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adaptive and CKH is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Adaptive Plasma Technology and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Adaptive Plasma i.e., Adaptive Plasma and CKH Food go up and down completely randomly.
Pair Corralation between Adaptive Plasma and CKH Food
Assuming the 90 days trading horizon Adaptive Plasma Technology is expected to under-perform the CKH Food. In addition to that, Adaptive Plasma is 1.77 times more volatile than CKH Food Health. It trades about -0.32 of its total potential returns per unit of risk. CKH Food Health is currently generating about -0.29 per unit of volatility. If you would invest 8,300 in CKH Food Health on August 24, 2024 and sell it today you would lose (1,000.00) from holding CKH Food Health or give up 12.05% 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. CKH Food Health
Performance |
| Timeline |
| Adaptive Plasma Tech |
| CKH Food Health |
Adaptive Plasma and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptive Plasma and CKH Food
The main advantage of trading using opposite Adaptive Plasma and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptive Plasma position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| Adaptive Plasma vs. SK Hynix | Adaptive Plasma vs. People Technology | Adaptive Plasma vs. SIMMTECH Co | Adaptive Plasma vs. Haesung DS Co |
| CKH Food vs. AptaBio Therapeutics | CKH Food vs. Daewoo SBI SPAC | CKH Food vs. Dream Security co | CKH Food vs. Microfriend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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