Correlation Between Haesung Industrial and MetaLabs
Can any of the company-specific risk be diversified away by investing in both Haesung Industrial and MetaLabs 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 MetaLabs 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 MetaLabs Co, you can compare the effects of market volatilities on Haesung Industrial and MetaLabs 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 MetaLabs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung Industrial and MetaLabs.
Diversification Opportunities for Haesung Industrial and MetaLabs
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haesung and MetaLabs is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Haesung Industrial Co and MetaLabs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetaLabs 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 MetaLabs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetaLabs has no effect on the direction of Haesung Industrial i.e., Haesung Industrial and MetaLabs go up and down completely randomly.
Pair Corralation between Haesung Industrial and MetaLabs
Assuming the 90 days trading horizon Haesung Industrial Co is expected to generate 0.4 times more return on investment than MetaLabs. However, Haesung Industrial Co is 2.48 times less risky than MetaLabs. It trades about -0.06 of its potential returns per unit of risk. MetaLabs Co is currently generating about -0.03 per unit of risk. If you would invest 1,007,424 in Haesung Industrial Co on August 27, 2024 and sell it today you would lose (400,424) from holding Haesung Industrial Co or give up 39.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung Industrial Co vs. MetaLabs Co
Performance |
| Timeline |
| Haesung Industrial |
| MetaLabs |
Haesung Industrial and MetaLabs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung Industrial and MetaLabs
The main advantage of trading using opposite Haesung Industrial and MetaLabs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung Industrial position performs unexpectedly, MetaLabs 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 MetaLabs will offset losses from the drop in MetaLabs' long position.| Haesung Industrial vs. Busan Industrial Co | Haesung Industrial vs. Busan Ind | Haesung Industrial vs. Mirae Asset Daewoo | Haesung Industrial vs. UNISEM Co |
| MetaLabs vs. Busan Industrial Co | MetaLabs vs. Busan Ind | MetaLabs vs. Mirae Asset Daewoo | MetaLabs vs. UNISEM 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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