Correlation Between Haitong Securities and Sumitomo Rubber
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and Sumitomo Rubber 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 Haitong Securities and Sumitomo Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and Sumitomo Rubber Industries, you can compare the effects of market volatilities on Haitong Securities and Sumitomo Rubber 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 Haitong Securities with a short position of Sumitomo Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and Sumitomo Rubber.
Diversification Opportunities for Haitong Securities and Sumitomo Rubber
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haitong and Sumitomo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and Sumitomo Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Rubber Indu and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with Sumitomo Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Rubber Indu has no effect on the direction of Haitong Securities i.e., Haitong Securities and Sumitomo Rubber go up and down completely randomly.
Pair Corralation between Haitong Securities and Sumitomo Rubber
Assuming the 90 days horizon Haitong Securities Co is expected to generate 2.29 times more return on investment than Sumitomo Rubber. However, Haitong Securities is 2.29 times more volatile than Sumitomo Rubber Industries. It trades about 0.06 of its potential returns per unit of risk. Sumitomo Rubber Industries is currently generating about 0.03 per unit of risk. If you would invest 41.00 in Haitong Securities Co on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Haitong Securities Co or generate 112.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Haitong Securities Co vs. Sumitomo Rubber Industries
Performance |
| Timeline |
| Haitong Securities |
| Sumitomo Rubber Indu |
Haitong Securities and Sumitomo Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and Sumitomo Rubber
The main advantage of trading using opposite Haitong Securities and Sumitomo Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, Sumitomo Rubber 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 Sumitomo Rubber will offset losses from the drop in Sumitomo Rubber's long position.| Haitong Securities vs. Summit Materials | Haitong Securities vs. Luckin Coffee | Haitong Securities vs. PRECISION DRILLING P | Haitong Securities vs. BORR DRILLING NEW |
| Sumitomo Rubber vs. Superior Plus Corp | Sumitomo Rubber vs. NMI Holdings | Sumitomo Rubber vs. SIVERS SEMICONDUCTORS AB | Sumitomo Rubber vs. NorAm Drilling AS |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |