Correlation Between Haitai Confectionery and Sempio Foods
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Sempio Foods 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 Sempio Foods 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 Sempio Foods Co, you can compare the effects of market volatilities on Haitai Confectionery and Sempio Foods 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 Sempio Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Sempio Foods.
Diversification Opportunities for Haitai Confectionery and Sempio Foods
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and Sempio is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Sempio Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sempio Foods 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 Sempio Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sempio Foods has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Sempio Foods go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Sempio Foods
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.77 times more return on investment than Sempio Foods. However, Haitai Confectionery Foods is 1.29 times less risky than Sempio Foods. It trades about 0.01 of its potential returns per unit of risk. Sempio Foods Co is currently generating about 0.0 per unit of risk. If you would invest 603,143 in Haitai Confectionery Foods on August 25, 2024 and sell it today you would lose (21,143) from holding Haitai Confectionery Foods or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Sempio Foods Co
Performance |
| Timeline |
| Haitai Confectionery |
| Sempio Foods |
Haitai Confectionery and Sempio Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Sempio Foods
The main advantage of trading using opposite Haitai Confectionery and Sempio Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Sempio Foods 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 Sempio Foods will offset losses from the drop in Sempio Foods' long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| Sempio Foods vs. Tway Air Co | Sempio Foods vs. DB Insurance Co | Sempio Foods vs. Daejung Chemicals Metals | Sempio Foods vs. Ssangyong Materials Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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