Correlation Between ADLINK Technology and CKM Building
Can any of the company-specific risk be diversified away by investing in both ADLINK Technology and CKM Building 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 ADLINK Technology and CKM Building into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADLINK Technology and CKM Building Material, you can compare the effects of market volatilities on ADLINK Technology and CKM Building 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 ADLINK Technology with a short position of CKM Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADLINK Technology and CKM Building.
Diversification Opportunities for ADLINK Technology and CKM Building
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ADLINK and CKM is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ADLINK Technology and CKM Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKM Building Material and ADLINK Technology 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 ADLINK Technology are associated (or correlated) with CKM Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKM Building Material has no effect on the direction of ADLINK Technology i.e., ADLINK Technology and CKM Building go up and down completely randomly.
Pair Corralation between ADLINK Technology and CKM Building
Assuming the 90 days trading horizon ADLINK Technology is expected to generate 1.86 times more return on investment than CKM Building. However, ADLINK Technology is 1.86 times more volatile than CKM Building Material. It trades about 0.12 of its potential returns per unit of risk. CKM Building Material is currently generating about -0.08 per unit of risk. If you would invest 6,950 in ADLINK Technology on September 1, 2024 and sell it today you would earn a total of 400.00 from holding ADLINK Technology or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADLINK Technology vs. CKM Building Material
Performance |
| Timeline |
| ADLINK Technology |
| CKM Building Material |
ADLINK Technology and CKM Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADLINK Technology and CKM Building
The main advantage of trading using opposite ADLINK Technology and CKM Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADLINK Technology position performs unexpectedly, CKM Building 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 CKM Building will offset losses from the drop in CKM Building's long position.| ADLINK Technology vs. CKM Building Material | ADLINK Technology vs. Cowealth Medical Holding | ADLINK Technology vs. Level Biotechnology | ADLINK Technology vs. Nankang Rubber Tire |
| CKM Building vs. Formosa International Hotels | CKM Building vs. Sporton International | CKM Building vs. HOYA Resort Hotel | CKM Building vs. Thermaltake Technology Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |