Correlation Between Haitai Confectionery and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and INtRON Biotechnology 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 INtRON Biotechnology 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 iNtRON Biotechnology, you can compare the effects of market volatilities on Haitai Confectionery and INtRON Biotechnology 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 INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and INtRON Biotechnology.
Diversification Opportunities for Haitai Confectionery and INtRON Biotechnology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haitai and INtRON is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology 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 INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between Haitai Confectionery and INtRON Biotechnology
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.88 times more return on investment than INtRON Biotechnology. However, Haitai Confectionery Foods is 1.14 times less risky than INtRON Biotechnology. It trades about 0.04 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 488,664 in Haitai Confectionery Foods on August 25, 2024 and sell it today you would earn a total of 93,336 from holding Haitai Confectionery Foods or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. iNtRON Biotechnology
Performance |
| Timeline |
| Haitai Confectionery |
| iNtRON Biotechnology |
Haitai Confectionery and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and INtRON Biotechnology
The main advantage of trading using opposite Haitai Confectionery and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |