Correlation Between Green Cross and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Green Cross 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 Green Cross and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cross Medical and Haesung DS Co, you can compare the effects of market volatilities on Green Cross 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 Green Cross with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and Haesung DS.
Diversification Opportunities for Green Cross and Haesung DS
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Green and Haesung is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and Green Cross 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 Green Cross Medical 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 Green Cross i.e., Green Cross and Haesung DS go up and down completely randomly.
Pair Corralation between Green Cross and Haesung DS
Assuming the 90 days trading horizon Green Cross Medical is expected to generate 1.07 times more return on investment than Haesung DS. However, Green Cross is 1.07 times more volatile than Haesung DS Co. It trades about -0.01 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.02 per unit of risk. If you would invest 568,000 in Green Cross Medical on September 2, 2024 and sell it today you would lose (202,000) from holding Green Cross Medical or give up 35.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cross Medical vs. Haesung DS Co
Performance |
| Timeline |
| Green Cross Medical |
| Haesung DS |
Green Cross and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cross and Haesung DS
The main advantage of trading using opposite Green Cross and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross 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.| Green Cross vs. AptaBio Therapeutics | Green Cross vs. KT Hitel | Green Cross vs. SillaJen | Green Cross vs. Cytogen |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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