Correlation Between Haesung DS and ASTORY CoLtd

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Can any of the company-specific risk be diversified away by investing in both Haesung DS and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on Haesung DS and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung DS and ASTORY CoLtd.

Diversification Opportunities for Haesung DS and ASTORY CoLtd

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between Haesung and ASTORY is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Haesung DS Co and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Haesung DS i.e., Haesung DS and ASTORY CoLtd go up and down completely randomly.

Pair Corralation between Haesung DS and ASTORY CoLtd

Assuming the 90 days trading horizon Haesung DS Co is expected to under-perform the ASTORY CoLtd. In addition to that, Haesung DS is 1.4 times more volatile than ASTORY CoLtd. It trades about -0.22 of its total potential returns per unit of risk. ASTORY CoLtd is currently generating about 0.23 per unit of volatility. If you would invest  700,000  in ASTORY CoLtd on September 1, 2024 and sell it today you would earn a total of  96,000  from holding ASTORY CoLtd or generate 13.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Haesung DS Co  vs.  ASTORY CoLtd

 Performance 
       Timeline  
Haesung DS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Haesung DS Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
ASTORY CoLtd 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ASTORY CoLtd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ASTORY CoLtd sustained solid returns over the last few months and may actually be approaching a breakup point.

Haesung DS and ASTORY CoLtd Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Haesung DS and ASTORY CoLtd

The main advantage of trading using opposite Haesung DS and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung DS position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.
The idea behind Haesung DS Co and ASTORY CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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