Correlation Between Haitai Confectionery and Samsung Fire
Can any of the company-specific risk be diversified away by investing in both Haitai Confectionery and Samsung Fire 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 Haitai Confectionery and Samsung Fire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitai Confectionery Foods and Samsung Fire Marine, you can compare the effects of market volatilities on Haitai Confectionery and Samsung Fire 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 Haitai Confectionery with a short position of Samsung Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitai Confectionery and Samsung Fire.
Diversification Opportunities for Haitai Confectionery and Samsung Fire
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haitai and Samsung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Haitai Confectionery Foods and Samsung Fire Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Fire Marine and Haitai Confectionery 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 Haitai Confectionery Foods are associated (or correlated) with Samsung Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Fire Marine has no effect on the direction of Haitai Confectionery i.e., Haitai Confectionery and Samsung Fire go up and down completely randomly.
Pair Corralation between Haitai Confectionery and Samsung Fire
Assuming the 90 days trading horizon Haitai Confectionery Foods is expected to generate 0.96 times more return on investment than Samsung Fire. However, Haitai Confectionery Foods is 1.04 times less risky than Samsung Fire. It trades about 0.21 of its potential returns per unit of risk. Samsung Fire Marine is currently generating about -0.09 per unit of risk. If you would invest 578,108 in Haitai Confectionery Foods on October 12, 2024 and sell it today you would earn a total of 31,892 from holding Haitai Confectionery Foods or generate 5.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Haitai Confectionery Foods vs. Samsung Fire Marine
Performance |
Timeline |
Haitai Confectionery |
Samsung Fire Marine |
Haitai Confectionery and Samsung Fire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Haitai Confectionery and Samsung Fire
The main advantage of trading using opposite Haitai Confectionery and Samsung Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitai Confectionery position performs unexpectedly, Samsung Fire 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 Samsung Fire will offset losses from the drop in Samsung Fire's long position.Haitai Confectionery vs. Jeju Beer Co | Haitai Confectionery vs. Nice Information Telecommunication | Haitai Confectionery vs. DB Insurance Co | Haitai Confectionery vs. Korea Computer |
Samsung Fire vs. Daishin Information Communications | Samsung Fire vs. Haitai Confectionery Foods | Samsung Fire vs. Mobile Appliance | Samsung Fire vs. Korea Information Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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