Correlation Between FarmStory and Haesung DS
Can any of the company-specific risk be diversified away by investing in both FarmStory and Haesung DS 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 FarmStory and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FarmStory Co and Haesung DS Co, you can compare the effects of market volatilities on FarmStory and Haesung DS 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 FarmStory with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FarmStory and Haesung DS.
Diversification Opportunities for FarmStory and Haesung DS
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FarmStory and Haesung is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding FarmStory Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and FarmStory 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 FarmStory Co are associated (or correlated) with Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of FarmStory i.e., FarmStory and Haesung DS go up and down completely randomly.
Pair Corralation between FarmStory and Haesung DS
Assuming the 90 days trading horizon FarmStory Co is expected to generate 0.45 times more return on investment than Haesung DS. However, FarmStory Co is 2.2 times less risky than Haesung DS. It trades about -0.3 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.22 per unit of risk. If you would invest 130,400 in FarmStory Co on September 1, 2024 and sell it today you would lose (14,400) from holding FarmStory Co or give up 11.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
FarmStory Co vs. Haesung DS Co
Performance |
| Timeline |
| FarmStory |
| Haesung DS |
FarmStory and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FarmStory and Haesung DS
The main advantage of trading using opposite FarmStory and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FarmStory position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| FarmStory vs. Korea Real Estate | FarmStory vs. Korea Ratings Co | FarmStory vs. IQuest Co | FarmStory vs. Wonbang Tech Co |
| Haesung DS vs. Dongsin Engineering Construction | Haesung DS vs. Doosan Fuel Cell | Haesung DS vs. Daishin Balance 1 | Haesung DS vs. Total Soft Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |