Correlation Between Haesung Industrial and Dongwoon Anatech
Can any of the company-specific risk be diversified away by investing in both Haesung Industrial and Dongwoon Anatech 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 Dongwoon Anatech 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 Dongwoon Anatech Co, you can compare the effects of market volatilities on Haesung Industrial and Dongwoon Anatech 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 Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung Industrial and Dongwoon Anatech.
Diversification Opportunities for Haesung Industrial and Dongwoon Anatech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haesung and Dongwoon is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Haesung Industrial Co and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech 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 Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of Haesung Industrial i.e., Haesung Industrial and Dongwoon Anatech go up and down completely randomly.
Pair Corralation between Haesung Industrial and Dongwoon Anatech
Assuming the 90 days trading horizon Haesung Industrial Co is expected to generate 0.46 times more return on investment than Dongwoon Anatech. However, Haesung Industrial Co is 2.18 times less risky than Dongwoon Anatech. It trades about -0.02 of its potential returns per unit of risk. Dongwoon Anatech Co is currently generating about -0.01 per unit of risk. If you would invest 586,000 in Haesung Industrial Co on October 18, 2024 and sell it today you would lose (3,000) from holding Haesung Industrial Co or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung Industrial Co vs. Dongwoon Anatech Co
Performance |
| Timeline |
| Haesung Industrial |
| Dongwoon Anatech |
Haesung Industrial and Dongwoon Anatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung Industrial and Dongwoon Anatech
The main advantage of trading using opposite Haesung Industrial and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung Industrial position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.| Haesung Industrial vs. Kukdo Chemical Co | Haesung Industrial vs. Miwon Chemicals Co | Haesung Industrial vs. PlayD Co | Haesung Industrial vs. LG Display Co |
| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |