Correlation Between Haesung Industrial and CU Medical
Can any of the company-specific risk be diversified away by investing in both Haesung Industrial and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Haesung Industrial and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung Industrial and CU Medical.
Diversification Opportunities for Haesung Industrial and CU Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haesung and 115480 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Haesung Industrial Co and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Haesung Industrial i.e., Haesung Industrial and CU Medical go up and down completely randomly.
Pair Corralation between Haesung Industrial and CU Medical
Assuming the 90 days trading horizon Haesung Industrial Co is expected to generate 0.79 times more return on investment than CU Medical. However, Haesung Industrial Co is 1.27 times less risky than CU Medical. It trades about -0.25 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.41 per unit of risk. If you would invest 670,000 in Haesung Industrial Co on August 29, 2024 and sell it today you would lose (56,000) from holding Haesung Industrial Co or give up 8.36% 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. CU Medical Systems
Performance |
| Timeline |
| Haesung Industrial |
| CU Medical Systems |
Haesung Industrial and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung Industrial and CU Medical
The main advantage of trading using opposite Haesung Industrial and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung Industrial position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| Haesung Industrial vs. Visang Education | Haesung Industrial vs. Daejoo Electronic Materials | Haesung Industrial vs. Samwha Electronics Co | Haesung Industrial vs. LG Display Co |
| CU Medical vs. Samsung Electronics Co | CU Medical vs. Samsung Electronics Co | CU Medical vs. LG Energy Solution | CU Medical vs. SK Hynix |
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.
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