Correlation Between Samwha Electronics and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and Haitai Confectionery 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 Samwha Electronics and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samwha Electronics Co and Haitai Confectionery Foods, you can compare the effects of market volatilities on Samwha Electronics and Haitai Confectionery 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 Samwha Electronics with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Haitai Confectionery.
Diversification Opportunities for Samwha Electronics and Haitai Confectionery
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samwha and Haitai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and Samwha Electronics 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 Samwha Electronics Co are associated (or correlated) with Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Samwha Electronics and Haitai Confectionery
Assuming the 90 days trading horizon Samwha Electronics is expected to generate 2.44 times less return on investment than Haitai Confectionery. In addition to that, Samwha Electronics is 2.27 times more volatile than Haitai Confectionery Foods. It trades about 0.01 of its total potential returns per unit of risk. Haitai Confectionery Foods is currently generating about 0.07 per unit of volatility. If you would invest 567,000 in Haitai Confectionery Foods on August 29, 2024 and sell it today you would earn a total of 39,000 from holding Haitai Confectionery Foods or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samwha Electronics Co vs. Haitai Confectionery Foods
Performance |
| Timeline |
| Samwha Electronics |
| Haitai Confectionery |
Samwha Electronics and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Haitai Confectionery
The main advantage of trading using opposite Samwha Electronics and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| Samwha Electronics vs. AptaBio Therapeutics | Samwha Electronics vs. Daewoo SBI SPAC | Samwha Electronics vs. Dream Security co | Samwha Electronics vs. Microfriend |
| Haitai Confectionery vs. WooDeumGee Farm Co, | Haitai Confectionery vs. Wireless Power Amplifier | Haitai Confectionery vs. Miwon Chemicals Co | Haitai Confectionery vs. Playgram 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.
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