Correlation Between Haitai Confectionery and NH Investment
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and NH Investment 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 Haitai Confectionery and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitai Confectionery Foods and NH Investment Securities, you can compare the effects of market volatilities on Haitai Confectionery and NH Investment 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 Haitai Confectionery with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and NH Investment.
Diversification Opportunities for Haitai Confectionery and NH Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and 005940 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and Haitai Confectionery 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 Haitai Confectionery Foods are associated (or correlated) with NH Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Investment Securities has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and NH Investment go up and down completely randomly.
Pair Corralation between Haitai Confectionery and NH Investment
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 1.53 times more return on investment than NH Investment. However, Haitai Confectionery is 1.53 times more volatile than NH Investment Securities. It trades about 0.24 of its potential returns per unit of risk. NH Investment Securities is currently generating about -0.07 per unit of risk. If you would invest 550,994 in Haitai Confectionery Foods on October 7, 2024 and sell it today you would earn a total of 61,006 from holding Haitai Confectionery Foods or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. NH Investment Securities
Performance |
| Timeline |
| Haitai Confectionery |
| NH Investment Securities |
Haitai Confectionery and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and NH Investment
The main advantage of trading using opposite Haitai Confectionery and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, NH Investment 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 NH Investment will offset losses from the drop in NH Investment's long position.| Haitai Confectionery vs. TOPMATERIAL LTD | Haitai Confectionery vs. Songwon Industrial Co | Haitai Confectionery vs. Eagon Industrial Co | Haitai Confectionery vs. Hwasung Industrial Co |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |