Correlation Between Sangsin Energy and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy 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 Sangsin Energy and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Haitai Confectionery Foods, you can compare the effects of market volatilities on Sangsin Energy 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 Sangsin Energy with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Haitai Confectionery.
Diversification Opportunities for Sangsin Energy and Haitai Confectionery
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sangsin and Haitai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and Sangsin Energy 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 Sangsin Energy Display 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 Sangsin Energy i.e., Sangsin Energy and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Sangsin Energy and Haitai Confectionery
Assuming the 90 days trading horizon Sangsin Energy Display is expected to under-perform the Haitai Confectionery. In addition to that, Sangsin Energy is 2.51 times more volatile than Haitai Confectionery Foods. It trades about -0.31 of its total potential returns per unit of risk. Haitai Confectionery Foods is currently generating about -0.41 per unit of volatility. If you would invest 612,000 in Haitai Confectionery Foods on November 5, 2024 and sell it today you would lose (49,000) from holding Haitai Confectionery Foods or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Haitai Confectionery Foods
Performance |
| Timeline |
| Sangsin Energy Display |
| Haitai Confectionery |
Sangsin Energy and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Haitai Confectionery
The main advantage of trading using opposite Sangsin Energy and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy 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.| Sangsin Energy vs. Digital Imaging Technology | Sangsin Energy vs. Kukdong Oil Chemicals | Sangsin Energy vs. Jin Air Co | Sangsin Energy vs. ENF Technology Co |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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