Correlation Between HANA Micron and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both HANA Micron and Shinil Electronics 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 HANA Micron and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANA Micron and Shinil Electronics Co, you can compare the effects of market volatilities on HANA Micron and Shinil Electronics 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 HANA Micron with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANA Micron and Shinil Electronics.
Diversification Opportunities for HANA Micron and Shinil Electronics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HANA and Shinil is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HANA Micron and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and HANA Micron 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 HANA Micron are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of HANA Micron i.e., HANA Micron and Shinil Electronics go up and down completely randomly.
Pair Corralation between HANA Micron and Shinil Electronics
Assuming the 90 days trading horizon HANA Micron is expected to generate 3.33 times more return on investment than Shinil Electronics. However, HANA Micron is 3.33 times more volatile than Shinil Electronics Co. It trades about 0.03 of its potential returns per unit of risk. Shinil Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 860,822 in HANA Micron on September 1, 2024 and sell it today you would earn a total of 102,178 from holding HANA Micron or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
HANA Micron vs. Shinil Electronics Co
Performance |
| Timeline |
| HANA Micron |
| Shinil Electronics |
HANA Micron and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANA Micron and Shinil Electronics
The main advantage of trading using opposite HANA Micron and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANA Micron position performs unexpectedly, Shinil Electronics 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.| HANA Micron vs. Shinil Electronics Co | HANA Micron vs. Miwon Chemical | HANA Micron vs. DAEDUCK ELECTRONICS CoLtd | HANA Micron vs. TK Chemical |
| Shinil Electronics vs. LG Display | Shinil Electronics vs. Hyundai Motor | Shinil Electronics vs. Hyundai Motor Co | Shinil Electronics vs. Hyundai Motor 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |