Correlation Between Haitai Confectionery and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Anam Electronics 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 Anam Electronics 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 Anam Electronics Co, you can compare the effects of market volatilities on Haitai Confectionery and Anam Electronics 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 Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Anam Electronics.
Diversification Opportunities for Haitai Confectionery and Anam Electronics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and Anam is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics 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 Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Anam Electronics go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Anam Electronics
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 1.02 times more return on investment than Anam Electronics. However, Haitai Confectionery is 1.02 times more volatile than Anam Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 629,999 in Haitai Confectionery Foods on October 11, 2024 and sell it today you would lose (19,999) from holding Haitai Confectionery Foods or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Anam Electronics Co
Performance |
| Timeline |
| Haitai Confectionery |
| Anam Electronics |
Haitai Confectionery and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Anam Electronics
The main advantage of trading using opposite Haitai Confectionery and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Haitai Confectionery vs. Jeju Beer Co | Haitai Confectionery vs. Nice Information Telecommunication | Haitai Confectionery vs. DB Insurance Co | Haitai Confectionery vs. Korea Computer |
| Anam Electronics vs. Daesung Hi Tech Co | Anam Electronics vs. Daishin Information Communications | Anam Electronics vs. Samyang Foods Co | Anam Electronics 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |