Correlation Between Haitai Confectionery and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Haitai Confectionery and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Hankukpackage.
Diversification Opportunities for Haitai Confectionery and Hankukpackage
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Haitai and Hankukpackage is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Hankukpackage go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Hankukpackage
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 2.34 times more return on investment than Hankukpackage. However, Haitai Confectionery is 2.34 times more volatile than Hankukpackage Co. It trades about 0.22 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.02 per unit of risk. If you would invest 583,000 in Haitai Confectionery Foods on November 28, 2024 and sell it today you would earn a total of 32,000 from holding Haitai Confectionery Foods or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Hankukpackage Co
Performance |
| Timeline |
| Haitai Confectionery |
| Hankukpackage |
Haitai Confectionery and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Hankukpackage
The main advantage of trading using opposite Haitai Confectionery and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Haitai Confectionery vs. Hanwha Life Insurance | Haitai Confectionery vs. Samsung Life Insurance | Haitai Confectionery vs. DB Insurance Co | Haitai Confectionery vs. SK Chemicals Co |
| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Sigong Tech Co | Hankukpackage vs. Namyang Dairy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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