Correlation Between Haitai Confectionery and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on Haitai Confectionery and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and ABOV Semiconductor.
Diversification Opportunities for Haitai Confectionery and ABOV Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haitai and ABOV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Haitai Confectionery and ABOV Semiconductor
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.62 times more return on investment than ABOV Semiconductor. However, Haitai Confectionery Foods is 1.62 times less risky than ABOV Semiconductor. It trades about 0.02 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.08 per unit of risk. If you would invest 564,551 in Haitai Confectionery Foods on November 2, 2024 and sell it today you would earn a total of 14,449 from holding Haitai Confectionery Foods or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Haitai Confectionery |
| ABOV Semiconductor |
Haitai Confectionery and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and ABOV Semiconductor
The main advantage of trading using opposite Haitai Confectionery and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Haitai Confectionery vs. Alton Sports CoLtd | Haitai Confectionery vs. Lotte Data Communication | Haitai Confectionery vs. Nable Communications | Haitai Confectionery vs. LG Household Healthcare |
| ABOV Semiconductor vs. Daiyang Metal Co | ABOV Semiconductor vs. Lee Ku Industrial | ABOV Semiconductor vs. Lotte Data Communication | ABOV Semiconductor vs. YeaRimDang Publishing 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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