Correlation Between Koryo Credit and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Haitai Confectionery Foods, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Haitai Confectionery.
Diversification Opportunities for Koryo Credit and Haitai Confectionery
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koryo and Haitai is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and Koryo Credit 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 Koryo Credit Information 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 Koryo Credit i.e., Koryo Credit and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Koryo Credit and Haitai Confectionery
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.59 times more return on investment than Haitai Confectionery. However, Koryo Credit Information is 1.7 times less risky than Haitai Confectionery. It trades about -0.25 of its potential returns per unit of risk. Haitai Confectionery Foods is currently generating about -0.17 per unit of risk. If you would invest 1,011,000 in Koryo Credit Information on October 30, 2024 and sell it today you would lose (30,000) from holding Koryo Credit Information or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Haitai Confectionery Foods
Performance |
| Timeline |
| Koryo Credit Information |
| Haitai Confectionery |
Koryo Credit and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Haitai Confectionery
The main advantage of trading using opposite Koryo Credit and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Ilji Technology Co | Koryo Credit vs. Seers Technology | Koryo Credit vs. Nature and Environment | Koryo Credit vs. Jeju Air Co |
| Haitai Confectionery vs. Camus Engineering Construction | Haitai Confectionery vs. Nable Communications | Haitai Confectionery vs. Neungyule Education | Haitai Confectionery vs. Asiana Airlines |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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