Correlation Between Haitai Confectionery and Cosmax
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Cosmax 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 Cosmax 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 Cosmax Inc, you can compare the effects of market volatilities on Haitai Confectionery and Cosmax 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 Cosmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Cosmax.
Diversification Opportunities for Haitai Confectionery and Cosmax
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and Cosmax is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Cosmax Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmax Inc 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 Cosmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmax Inc has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Cosmax go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Cosmax
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 1.03 times more return on investment than Cosmax. However, Haitai Confectionery is 1.03 times more volatile than Cosmax Inc. It trades about 0.01 of its potential returns per unit of risk. Cosmax Inc is currently generating about -0.02 per unit of risk. If you would invest 591,000 in Haitai Confectionery Foods on September 2, 2024 and sell it today you would lose (20,000) from holding Haitai Confectionery Foods or give up 3.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Cosmax Inc
Performance |
| Timeline |
| Haitai Confectionery |
| Cosmax Inc |
Haitai Confectionery and Cosmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Cosmax
The main advantage of trading using opposite Haitai Confectionery and Cosmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Cosmax 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 Cosmax will offset losses from the drop in Cosmax's long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| Cosmax vs. E Investment Development | Cosmax vs. Cuckoo Electronics Co | Cosmax vs. Daeduck Electronics Co | Cosmax vs. Daol Investment Securities |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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