Correlation Between BGF Retail and Haesung DS
Can any of the company-specific risk be diversified away by investing in both BGF Retail 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 BGF Retail and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGF Retail Co and Haesung DS Co, you can compare the effects of market volatilities on BGF Retail 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 BGF Retail with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Retail and Haesung DS.
Diversification Opportunities for BGF Retail and Haesung DS
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGF and Haesung is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BGF Retail Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and BGF Retail 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 BGF Retail Co 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 BGF Retail i.e., BGF Retail and Haesung DS go up and down completely randomly.
Pair Corralation between BGF Retail and Haesung DS
Assuming the 90 days trading horizon BGF Retail is expected to generate 11.8 times less return on investment than Haesung DS. But when comparing it to its historical volatility, BGF Retail Co is 1.9 times less risky than Haesung DS. It trades about 0.05 of its potential returns per unit of risk. Haesung DS Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,340,000 in Haesung DS Co on October 31, 2024 and sell it today you would earn a total of 315,000 from holding Haesung DS Co or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGF Retail Co vs. Haesung DS Co
Performance |
| Timeline |
| BGF Retail |
| Haesung DS |
BGF Retail and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Retail and Haesung DS
The main advantage of trading using opposite BGF Retail and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Retail 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.| BGF Retail vs. DB Financial Investment | BGF Retail vs. Golden Bridge Investment | BGF Retail vs. DSC Investment | BGF Retail vs. Atinum Investment Co |
| Haesung DS vs. Samsung Electronics Co | Haesung DS vs. Samsung Electronics Co | Haesung DS vs. SK Hynix | Haesung DS vs. HMM 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |