Correlation Between Haitai Confectionery and AeroSpace Technology
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and AeroSpace Technology 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 AeroSpace Technology 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 AeroSpace Technology of, you can compare the effects of market volatilities on Haitai Confectionery and AeroSpace Technology 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 AeroSpace Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and AeroSpace Technology.
Diversification Opportunities for Haitai Confectionery and AeroSpace Technology
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haitai and AeroSpace is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and AeroSpace Technology of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AeroSpace Technology 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 AeroSpace Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AeroSpace Technology has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and AeroSpace Technology go up and down completely randomly.
Pair Corralation between Haitai Confectionery and AeroSpace Technology
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to under-perform the AeroSpace Technology. But the stock apears to be less risky and, when comparing its historical volatility, Haitai Confectionery Foods is 2.61 times less risky than AeroSpace Technology. The stock trades about -0.15 of its potential returns per unit of risk. The AeroSpace Technology of is currently generating about 0.81 of returns per unit of risk over similar time horizon. If you would invest 50,900 in AeroSpace Technology of on November 1, 2024 and sell it today you would earn a total of 25,200 from holding AeroSpace Technology of or generate 49.51% 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. AeroSpace Technology of
Performance |
| Timeline |
| Haitai Confectionery |
| AeroSpace Technology |
Haitai Confectionery and AeroSpace Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and AeroSpace Technology
The main advantage of trading using opposite Haitai Confectionery and AeroSpace Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, AeroSpace Technology 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 AeroSpace Technology will offset losses from the drop in AeroSpace Technology's long position.| Haitai Confectionery vs. KB Financial Group | Haitai Confectionery vs. Shinhan Financial Group | Haitai Confectionery vs. Hana Financial | Haitai Confectionery vs. Woori Financial Group |
| AeroSpace Technology vs. Shinhan Inverse Silver | AeroSpace Technology vs. Keyang Electric Machinery | AeroSpace Technology vs. Taegu Broadcasting | AeroSpace Technology vs. Sungdo Engineering Construction |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| 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 |