Correlation Between Yura Tech and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Haitai Confectionery 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 Yura Tech and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yura Tech Co and Haitai Confectionery Foods, you can compare the effects of market volatilities on Yura Tech and Haitai Confectionery 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 Yura Tech with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Haitai Confectionery.
Diversification Opportunities for Yura Tech and Haitai Confectionery
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yura and Haitai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and Yura Tech 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 Yura Tech Co are associated (or correlated) with Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of Yura Tech i.e., Yura Tech and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Yura Tech and Haitai Confectionery
Assuming the 90 days trading horizon Yura Tech Co is expected to generate 1.68 times more return on investment than Haitai Confectionery. However, Yura Tech is 1.68 times more volatile than Haitai Confectionery Foods. It trades about 0.14 of its potential returns per unit of risk. Haitai Confectionery Foods is currently generating about -0.15 per unit of risk. If you would invest 794,000 in Yura Tech Co on November 1, 2024 and sell it today you would earn a total of 36,000 from holding Yura Tech Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Haitai Confectionery Foods
Performance |
| Timeline |
| Yura Tech |
| Haitai Confectionery |
Yura Tech and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Haitai Confectionery
The main advantage of trading using opposite Yura Tech and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| Yura Tech vs. Hwangkum Steel Technology | Yura Tech vs. Cots Technology Co | Yura Tech vs. Aprogen Healthcare Games | Yura Tech vs. Lotte Chilsung Beverage |
| Haitai Confectionery vs. KB Financial Group | Haitai Confectionery vs. Shinhan Financial Group | Haitai Confectionery vs. Hana Financial | Haitai Confectionery vs. Woori Financial Group |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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