Correlation Between Haesung Industrial and Sungwoo Electronics
Can any of the company-specific risk be diversified away by investing in both Haesung Industrial and Sungwoo Electronics 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 Haesung Industrial and Sungwoo Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung Industrial Co and Sungwoo Electronics Co, you can compare the effects of market volatilities on Haesung Industrial and Sungwoo Electronics 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 Haesung Industrial with a short position of Sungwoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung Industrial and Sungwoo Electronics.
Diversification Opportunities for Haesung Industrial and Sungwoo Electronics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haesung and Sungwoo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Haesung Industrial Co and Sungwoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungwoo Electronics and Haesung Industrial 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 Haesung Industrial Co are associated (or correlated) with Sungwoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungwoo Electronics has no effect on the direction of Haesung Industrial i.e., Haesung Industrial and Sungwoo Electronics go up and down completely randomly.
Pair Corralation between Haesung Industrial and Sungwoo Electronics
Assuming the 90 days trading horizon Haesung Industrial is expected to generate 4.37 times less return on investment than Sungwoo Electronics. But when comparing it to its historical volatility, Haesung Industrial Co is 1.28 times less risky than Sungwoo Electronics. It trades about 0.06 of its potential returns per unit of risk. Sungwoo Electronics Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 316,500 in Sungwoo Electronics Co on October 7, 2024 and sell it today you would earn a total of 37,500 from holding Sungwoo Electronics Co or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung Industrial Co vs. Sungwoo Electronics Co
Performance |
| Timeline |
| Haesung Industrial |
| Sungwoo Electronics |
Haesung Industrial and Sungwoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung Industrial and Sungwoo Electronics
The main advantage of trading using opposite Haesung Industrial and Sungwoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung Industrial position performs unexpectedly, Sungwoo Electronics 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 Sungwoo Electronics will offset losses from the drop in Sungwoo Electronics' long position.| Haesung Industrial vs. DongWon Development CoLtd | Haesung Industrial vs. Busan Industrial Co | Haesung Industrial vs. Busan Ind | Haesung Industrial vs. UNISEM Co |
| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics vs. Microfriend |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |