Correlation Between GiantStep and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both GiantStep and Haitai Confectionery 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 GiantStep and Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GiantStep Co and Haitai Confectionery Foods, you can compare the effects of market volatilities on GiantStep and Haitai Confectionery 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 GiantStep with a short position of Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of GiantStep and Haitai Confectionery.
Diversification Opportunities for GiantStep and Haitai Confectionery
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GiantStep and Haitai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding GiantStep Co and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery and GiantStep 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 GiantStep Co are associated (or correlated) with Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of GiantStep i.e., GiantStep and Haitai Confectionery go up and down completely randomly.
Pair Corralation between GiantStep and Haitai Confectionery
Assuming the 90 days trading horizon GiantStep Co is expected to under-perform the Haitai Confectionery. In addition to that, GiantStep is 1.65 times more volatile than Haitai Confectionery Foods. It trades about -0.04 of its total potential returns per unit of risk. Haitai Confectionery Foods is currently generating about 0.01 per unit of volatility. If you would invest 623,715 in Haitai Confectionery Foods on September 13, 2024 and sell it today you would lose (12,715) from holding Haitai Confectionery Foods or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GiantStep Co vs. Haitai Confectionery Foods
Performance |
| Timeline |
| GiantStep |
| Haitai Confectionery |
GiantStep and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GiantStep and Haitai Confectionery
The main advantage of trading using opposite GiantStep and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GiantStep position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| GiantStep vs. HYBE Co | GiantStep vs. NH SPAC 8 | GiantStep vs. Wysiwyg Studios Co | GiantStep vs. RaemongRaein Co |
| Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. Samsung Electronics Co | Haitai Confectionery vs. SK Hynix | Haitai Confectionery vs. POSCO Holdings |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |