Correlation Between Haitai Confectionery and Semyung Electric
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Semyung Electric 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 Semyung Electric 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 Semyung Electric Machinery, you can compare the effects of market volatilities on Haitai Confectionery and Semyung Electric 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 Semyung Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Semyung Electric.
Diversification Opportunities for Haitai Confectionery and Semyung Electric
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haitai and Semyung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Semyung Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semyung Electric Mac 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 Semyung Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semyung Electric Mac has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Semyung Electric go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Semyung Electric
Assuming the 90 days trading horizon Haitai Confectionery is expected to generate 16.55 times less return on investment than Semyung Electric. But when comparing it to its historical volatility, Haitai Confectionery Foods is 1.74 times less risky than Semyung Electric. It trades about 0.0 of its potential returns per unit of risk. Semyung Electric Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 308,924 in Semyung Electric Machinery on September 5, 2024 and sell it today you would earn a total of 149,076 from holding Semyung Electric Machinery or generate 48.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Semyung Electric Machinery
Performance |
| Timeline |
| Haitai Confectionery |
| Semyung Electric Mac |
Haitai Confectionery and Semyung Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Semyung Electric
The main advantage of trading using opposite Haitai Confectionery and Semyung Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Semyung Electric 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 Semyung Electric will offset losses from the drop in Semyung Electric's long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| Semyung Electric vs. PLAYWITH | Semyung Electric vs. Hyundai Engineering Plastics | Semyung Electric vs. Hana Materials | Semyung Electric vs. Lake Materials Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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