Correlation Between LEENO Industrial and Haesung Industrial
Can any of the company-specific risk be diversified away by investing in both LEENO Industrial and Haesung Industrial 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 LEENO Industrial and Haesung Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LEENO Industrial and Haesung Industrial Co, you can compare the effects of market volatilities on LEENO Industrial and Haesung Industrial 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 LEENO Industrial with a short position of Haesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEENO Industrial and Haesung Industrial.
Diversification Opportunities for LEENO Industrial and Haesung Industrial
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LEENO and Haesung is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding LEENO Industrial and Haesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung Industrial and LEENO 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 LEENO Industrial are associated (or correlated) with Haesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Industrial has no effect on the direction of LEENO Industrial i.e., LEENO Industrial and Haesung Industrial go up and down completely randomly.
Pair Corralation between LEENO Industrial and Haesung Industrial
Assuming the 90 days trading horizon LEENO Industrial is expected to generate 1.99 times more return on investment than Haesung Industrial. However, LEENO Industrial is 1.99 times more volatile than Haesung Industrial Co. It trades about 0.02 of its potential returns per unit of risk. Haesung Industrial Co is currently generating about -0.09 per unit of risk. If you would invest 17,044,300 in LEENO Industrial on September 19, 2024 and sell it today you would earn a total of 1,825,700 from holding LEENO Industrial or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LEENO Industrial vs. Haesung Industrial Co
Performance |
| Timeline |
| LEENO Industrial |
| Haesung Industrial |
LEENO Industrial and Haesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LEENO Industrial and Haesung Industrial
The main advantage of trading using opposite LEENO Industrial and Haesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEENO Industrial position performs unexpectedly, Haesung Industrial 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 Haesung Industrial will offset losses from the drop in Haesung Industrial's long position.| LEENO Industrial vs. Cube Entertainment | LEENO Industrial vs. Dreamus Company | LEENO Industrial vs. LG Energy Solution | LEENO Industrial vs. Dongwon System |
| Haesung Industrial vs. Solution Advanced Technology | Haesung Industrial vs. Busan Industrial Co | Haesung Industrial vs. Busan Ind | Haesung Industrial vs. Sam Chun Dang |
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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