Correlation Between Haitai Confectionery and Green Cross
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Green Cross 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 Green Cross 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 Green Cross Medical, you can compare the effects of market volatilities on Haitai Confectionery and Green Cross 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 Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Green Cross.
Diversification Opportunities for Haitai Confectionery and Green Cross
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haitai and Green is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical 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 Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Green Cross go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Green Cross
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.74 times more return on investment than Green Cross. However, Haitai Confectionery Foods is 1.36 times less risky than Green Cross. It trades about 0.04 of its potential returns per unit of risk. Green Cross Medical is currently generating about 0.02 per unit of risk. If you would invest 497,338 in Haitai Confectionery Foods on September 19, 2024 and sell it today you would earn a total of 135,662 from holding Haitai Confectionery Foods or generate 27.28% 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. Green Cross Medical
Performance |
| Timeline |
| Haitai Confectionery |
| Green Cross Medical |
Haitai Confectionery and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Green Cross
The main advantage of trading using opposite Haitai Confectionery and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. SK Hynix | Haitai Confectionery vs. POSCO Holdings |
| Green Cross vs. Hyunwoo Industrial Co | Green Cross vs. Foodnamoo | Green Cross vs. Kumho Industrial Co | Green Cross vs. Haitai Confectionery Foods |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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