Correlation Between Haesung DS and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both Haesung DS and ITM Semiconductor 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 Haesung DS and ITM Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung DS Co and ITM Semiconductor Co, you can compare the effects of market volatilities on Haesung DS and ITM Semiconductor 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 Haesung DS with a short position of ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung DS and ITM Semiconductor.
Diversification Opportunities for Haesung DS and ITM Semiconductor
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haesung and ITM is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Haesung DS Co and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor and Haesung DS 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 Haesung DS Co are associated (or correlated) with ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of Haesung DS i.e., Haesung DS and ITM Semiconductor go up and down completely randomly.
Pair Corralation between Haesung DS and ITM Semiconductor
Assuming the 90 days trading horizon Haesung DS Co is expected to generate 0.91 times more return on investment than ITM Semiconductor. However, Haesung DS Co is 1.1 times less risky than ITM Semiconductor. It trades about -0.02 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.03 per unit of risk. If you would invest 5,121,861 in Haesung DS Co on November 27, 2024 and sell it today you would lose (2,176,861) from holding Haesung DS Co or give up 42.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haesung DS Co vs. ITM Semiconductor Co
Performance |
| Timeline |
| Haesung DS |
| ITM Semiconductor |
Haesung DS and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung DS and ITM Semiconductor
The main advantage of trading using opposite Haesung DS and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung DS position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| Haesung DS vs. Inzi Display CoLtd | Haesung DS vs. Lotte Non Life Insurance | Haesung DS vs. GAMEVIL | Haesung DS vs. Dongbu Insurance Co |
| ITM Semiconductor vs. SS TECH | ITM Semiconductor vs. LEENO Industrial | ITM Semiconductor vs. Wonik Ips Co | ITM Semiconductor vs. SFA Semicon 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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