Correlation Between Haitai Confectionery and Techwing
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Techwing 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 Techwing 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 Techwing, you can compare the effects of market volatilities on Haitai Confectionery and Techwing 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 Techwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Techwing.
Diversification Opportunities for Haitai Confectionery and Techwing
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haitai and Techwing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Techwing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techwing 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 Techwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techwing has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Techwing go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Techwing
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to under-perform the Techwing. But the stock apears to be less risky and, when comparing its historical volatility, Haitai Confectionery Foods is 2.56 times less risky than Techwing. The stock trades about -0.04 of its potential returns per unit of risk. The Techwing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,365,000 in Techwing on November 6, 2024 and sell it today you would lose (200,000) from holding Techwing or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Techwing
Performance |
| Timeline |
| Haitai Confectionery |
| Techwing |
Haitai Confectionery and Techwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Techwing
The main advantage of trading using opposite Haitai Confectionery and Techwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Techwing 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 Techwing will offset losses from the drop in Techwing's long position.| Haitai Confectionery vs. SEOWONINTECHCoLtd | Haitai Confectionery vs. KMH Hitech Co | Haitai Confectionery vs. Dongwoon Anatech Co | Haitai Confectionery vs. Mirai Semiconductors Co |
| Techwing vs. Lotte Chilsung Beverage | Techwing vs. Daechang Steel Co | Techwing vs. Daehan Steel | Techwing vs. ABOV Semiconductor 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |