Correlation Between Haitai Confectionery and GiantStep
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and GiantStep 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 GiantStep 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 GiantStep Co, you can compare the effects of market volatilities on Haitai Confectionery and GiantStep 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 GiantStep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and GiantStep.
Diversification Opportunities for Haitai Confectionery and GiantStep
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haitai and GiantStep is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and GiantStep Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GiantStep 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 GiantStep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GiantStep has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and GiantStep go up and down completely randomly.
Pair Corralation between Haitai Confectionery and GiantStep
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.64 times more return on investment than GiantStep. However, Haitai Confectionery Foods is 1.56 times less risky than GiantStep. It trades about 0.02 of its potential returns per unit of risk. GiantStep Co is currently generating about -0.04 per unit of risk. If you would invest 529,145 in Haitai Confectionery Foods on September 12, 2024 and sell it today you would earn a total of 45,855 from holding Haitai Confectionery Foods or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitai Confectionery Foods vs. GiantStep Co
Performance |
| Timeline |
| Haitai Confectionery |
| GiantStep |
Haitai Confectionery and GiantStep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitai Confectionery and GiantStep
The main advantage of trading using opposite Haitai Confectionery and GiantStep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, GiantStep 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 GiantStep will offset losses from the drop in GiantStep's long position.| Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. SK Hynix | Haitai Confectionery vs. POSCO Holdings |
| GiantStep vs. Haitai Confectionery Foods | GiantStep vs. Cloud Air CoLtd | GiantStep vs. FoodNamoo | GiantStep vs. Sempio Foods 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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