Correlation Between Adobe Systems and Hi Sun
Can any of the company-specific risk be diversified away by investing in both Adobe Systems and Hi Sun 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 Adobe Systems and Hi Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adobe Systems Incorporated and Hi Sun Technology, you can compare the effects of market volatilities on Adobe Systems and Hi Sun 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 Adobe Systems with a short position of Hi Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe Systems and Hi Sun.
Diversification Opportunities for Adobe Systems and Hi Sun
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adobe and HISNF is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Adobe Systems Incorporated and Hi Sun Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hi Sun Technology and Adobe Systems 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 Adobe Systems Incorporated are associated (or correlated) with Hi Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hi Sun Technology has no effect on the direction of Adobe Systems i.e., Adobe Systems and Hi Sun go up and down completely randomly.
Pair Corralation between Adobe Systems and Hi Sun
If you would invest 47,808 in Adobe Systems Incorporated on September 1, 2024 and sell it today you would earn a total of 3,785 from holding Adobe Systems Incorporated or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adobe Systems Incorporated vs. Hi Sun Technology
Performance |
| Timeline |
| Adobe Systems |
| Hi Sun Technology |
Adobe Systems and Hi Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adobe Systems and Hi Sun
The main advantage of trading using opposite Adobe Systems and Hi Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adobe Systems position performs unexpectedly, Hi Sun 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 Hi Sun will offset losses from the drop in Hi Sun's long position.| Adobe Systems vs. Crowdstrike Holdings | Adobe Systems vs. Palantir Technologies Class | Adobe Systems vs. Zscaler | Adobe Systems vs. Palo Alto Networks |
| Hi Sun vs. Zerify Inc | Hi Sun vs. Smartmetric | Hi Sun vs. World Health Energy | Hi Sun vs. Plyzer Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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