Correlation Between PlayD and Haesung Industrial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PlayD 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 PlayD and Haesung Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayD Co and Haesung Industrial Co, you can compare the effects of market volatilities on PlayD 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 PlayD with a short position of Haesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayD and Haesung Industrial.

Diversification Opportunities for PlayD and Haesung Industrial

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between PlayD and Haesung is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PlayD 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 PlayD 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 PlayD 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 PlayD i.e., PlayD and Haesung Industrial go up and down completely randomly.

Pair Corralation between PlayD and Haesung Industrial

Assuming the 90 days trading horizon PlayD Co is expected to generate 3.09 times more return on investment than Haesung Industrial. However, PlayD is 3.09 times more volatile than Haesung Industrial Co. It trades about 0.03 of its potential returns per unit of risk. Haesung Industrial Co is currently generating about -0.06 per unit of risk. If you would invest  560,000  in PlayD Co on October 18, 2024 and sell it today you would earn a total of  80,000  from holding PlayD Co or generate 14.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.59%
ValuesDaily Returns

PlayD Co  vs.  Haesung Industrial Co

 Performance 
       Timeline  
PlayD 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in PlayD Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, PlayD sustained solid returns over the last few months and may actually be approaching a breakup point.
Haesung Industrial 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Haesung Industrial 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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

PlayD and Haesung Industrial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PlayD and Haesung Industrial

The main advantage of trading using opposite PlayD and Haesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayD 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.
The idea behind PlayD Co and Haesung Industrial Co 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.
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Fundamental Analysis
View fundamental data based on most recent published financial statements
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets