Correlation Between Fine Besteel and Haesung Industrial
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and Haesung Industrial 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 Fine Besteel and Haesung Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Haesung Industrial Co, you can compare the effects of market volatilities on Fine Besteel and Haesung Industrial 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 Fine Besteel with a short position of Haesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Haesung Industrial.
Diversification Opportunities for Fine Besteel and Haesung Industrial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fine and Haesung is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Haesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung Industrial and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with Haesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Industrial has no effect on the direction of Fine Besteel i.e., Fine Besteel and Haesung Industrial go up and down completely randomly.
Pair Corralation between Fine Besteel and Haesung Industrial
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.42 times more return on investment than Haesung Industrial. However, Fine Besteel is 1.42 times more volatile than Haesung Industrial Co. It trades about 0.0 of its potential returns per unit of risk. Haesung Industrial Co is currently generating about -0.11 per unit of risk. If you would invest 99,800 in Fine Besteel Co on October 18, 2024 and sell it today you would lose (4,500) from holding Fine Besteel Co or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Haesung Industrial Co
Performance |
| Timeline |
| Fine Besteel |
| Haesung Industrial |
Fine Besteel and Haesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Haesung Industrial
The main advantage of trading using opposite Fine Besteel and Haesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, Haesung Industrial 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 Industrial will offset losses from the drop in Haesung Industrial's long position.| Fine Besteel vs. Hyundai Engineering Construction | Fine Besteel vs. Daol Investment Securities | Fine Besteel vs. KEPCO Engineering Construction | Fine Besteel vs. ENERGYMACHINERY KOREA CoLtd |
| Haesung Industrial vs. Moonbae Steel | Haesung Industrial vs. Seah Steel Corp | Haesung Industrial vs. Fine Besteel Co | Haesung Industrial vs. Finebesteel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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