Correlation Between Grand Korea and Adaptive Plasma
Can any of the company-specific risk be diversified away by investing in both Grand Korea and Adaptive Plasma 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 Grand Korea and Adaptive Plasma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and Adaptive Plasma Technology, you can compare the effects of market volatilities on Grand Korea and Adaptive Plasma 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 Grand Korea with a short position of Adaptive Plasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and Adaptive Plasma.
Diversification Opportunities for Grand Korea and Adaptive Plasma
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Adaptive is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and Adaptive Plasma Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptive Plasma Tech and Grand Korea 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 Grand Korea Leisure are associated (or correlated) with Adaptive Plasma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptive Plasma Tech has no effect on the direction of Grand Korea i.e., Grand Korea and Adaptive Plasma go up and down completely randomly.
Pair Corralation between Grand Korea and Adaptive Plasma
Assuming the 90 days trading horizon Grand Korea Leisure is expected to under-perform the Adaptive Plasma. But the stock apears to be less risky and, when comparing its historical volatility, Grand Korea Leisure is 1.56 times less risky than Adaptive Plasma. The stock trades about -0.04 of its potential returns per unit of risk. The Adaptive Plasma Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,150,000 in Adaptive Plasma Technology on October 27, 2024 and sell it today you would lose (366,000) from holding Adaptive Plasma Technology or give up 31.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. Adaptive Plasma Technology
Performance |
| Timeline |
| Grand Korea Leisure |
| Adaptive Plasma Tech |
Grand Korea and Adaptive Plasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and Adaptive Plasma
The main advantage of trading using opposite Grand Korea and Adaptive Plasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea position performs unexpectedly, Adaptive Plasma 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 Adaptive Plasma will offset losses from the drop in Adaptive Plasma's long position.| Grand Korea vs. Mobile Appliance | Grand Korea vs. Nh Investment And | Grand Korea vs. Innowireless Co | Grand Korea vs. Wireless Power Amplifier |
| Adaptive Plasma vs. Vitzro Tech Co | Adaptive Plasma vs. Yura Tech Co | Adaptive Plasma vs. Samsung Publishing Co | Adaptive Plasma vs. Solution Advanced Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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