Correlation Between MS Autotech and Haesung DS
Can any of the company-specific risk be diversified away by investing in both MS Autotech and Haesung DS 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 MS Autotech and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MS Autotech CoLtd and Haesung DS Co, you can compare the effects of market volatilities on MS Autotech and Haesung DS 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 MS Autotech with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MS Autotech and Haesung DS.
Diversification Opportunities for MS Autotech and Haesung DS
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 123040 and Haesung is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding MS Autotech CoLtd and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and MS Autotech 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 MS Autotech CoLtd are associated (or correlated) with Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of MS Autotech i.e., MS Autotech and Haesung DS go up and down completely randomly.
Pair Corralation between MS Autotech and Haesung DS
Assuming the 90 days trading horizon MS Autotech CoLtd is expected to generate 0.77 times more return on investment than Haesung DS. However, MS Autotech CoLtd is 1.31 times less risky than Haesung DS. It trades about -0.2 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.22 per unit of risk. If you would invest 310,500 in MS Autotech CoLtd on September 1, 2024 and sell it today you would lose (40,500) from holding MS Autotech CoLtd or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
MS Autotech CoLtd vs. Haesung DS Co
Performance |
| Timeline |
| MS Autotech CoLtd |
| Haesung DS |
MS Autotech and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MS Autotech and Haesung DS
The main advantage of trading using opposite MS Autotech and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MS Autotech position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| MS Autotech vs. LG Display | MS Autotech vs. Hyundai Motor | MS Autotech vs. Hyundai Motor Co | MS Autotech vs. Hyundai Motor Co |
| Haesung DS vs. Dongsin Engineering Construction | Haesung DS vs. Doosan Fuel Cell | Haesung DS vs. Daishin Balance 1 | Haesung DS vs. Total Soft Bank |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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