Correlation Between Haitai Confectionery and Moadata
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Moadata 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 Moadata 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 Moadata Co, you can compare the effects of market volatilities on Haitai Confectionery and Moadata 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 Moadata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Moadata.
Diversification Opportunities for Haitai Confectionery and Moadata
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and Moadata is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Moadata Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moadata 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 Moadata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moadata has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Moadata go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Moadata
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.67 times more return on investment than Moadata. However, Haitai Confectionery Foods is 1.49 times less risky than Moadata. It trades about 0.11 of its potential returns per unit of risk. Moadata Co is currently generating about -0.07 per unit of risk. If you would invest 580,000 in Haitai Confectionery Foods on August 29, 2024 and sell it today you would earn a total of 26,000 from holding Haitai Confectionery Foods or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. Moadata Co
Performance |
| Timeline |
| Haitai Confectionery |
| Moadata |
Haitai Confectionery and Moadata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and Moadata
The main advantage of trading using opposite Haitai Confectionery and Moadata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Moadata 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 Moadata will offset losses from the drop in Moadata's long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| Moadata vs. Posco ICT | Moadata vs. Devsisters corporation | Moadata vs. Nice Information Telecommunication | Moadata vs. InfoBank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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