Correlation Between Haitai Confectionery and Kosdaq Composite
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Kosdaq Composite 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 Kosdaq Composite 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 Kosdaq Composite Index, you can compare the effects of market volatilities on Haitai Confectionery and Kosdaq Composite 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 Kosdaq Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Kosdaq Composite.
Diversification Opportunities for Haitai Confectionery and Kosdaq Composite
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitai and Kosdaq is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Kosdaq Composite Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kosdaq Composite Index 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 Kosdaq Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kosdaq Composite Index has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Kosdaq Composite go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Kosdaq Composite
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 1.37 times more return on investment than Kosdaq Composite. However, Haitai Confectionery is 1.37 times more volatile than Kosdaq Composite Index. It trades about 0.06 of its potential returns per unit of risk. Kosdaq Composite Index is currently generating about -0.19 per unit of risk. If you would invest 575,000 in Haitai Confectionery Foods on August 30, 2024 and sell it today you would earn a total of 14,000 from holding Haitai Confectionery Foods or generate 2.43% 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. Kosdaq Composite Index
Performance |
| Timeline |
Haitai Confectionery and Kosdaq Composite Volatility Contrast
Predicted Return Density |
| Returns |
Haitai Confectionery Foods
Pair trading matchups for Haitai Confectionery
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pair Trading with Haitai Confectionery and Kosdaq Composite
The main advantage of trading using opposite Haitai Confectionery and Kosdaq Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Kosdaq Composite 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 Kosdaq Composite will offset losses from the drop in Kosdaq Composite's long position.| Haitai Confectionery vs. AptaBio Therapeutics | Haitai Confectionery vs. Daewoo SBI SPAC | Haitai Confectionery vs. Dream Security co | Haitai Confectionery vs. Microfriend |
| Kosdaq Composite vs. BGF Retail Co | Kosdaq Composite vs. Chin Yang Chemical | Kosdaq Composite vs. Daehan Synthetic Fiber | Kosdaq Composite vs. Pungguk Ethanol Industrial |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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