Correlation Between Hana Technology and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Hana Technology and Anam 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 Technology and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Technology Co and Anam Electronics Co, you can compare the effects of market volatilities on Hana Technology and Anam 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 Technology with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and Anam Electronics.
Diversification Opportunities for Hana Technology and Anam Electronics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hana and Anam is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Hana Technology 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 Technology Co are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Hana Technology i.e., Hana Technology and Anam Electronics go up and down completely randomly.
Pair Corralation between Hana Technology and Anam Electronics
Assuming the 90 days trading horizon Hana Technology Co is expected to under-perform the Anam Electronics. In addition to that, Hana Technology is 1.97 times more volatile than Anam Electronics Co. It trades about -0.31 of its total potential returns per unit of risk. Anam Electronics Co is currently generating about -0.12 per unit of volatility. If you would invest 125,000 in Anam Electronics Co on September 2, 2024 and sell it today you would lose (7,600) from holding Anam Electronics Co or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Technology Co vs. Anam Electronics Co
Performance |
| Timeline |
| Hana Technology |
| Anam Electronics |
Hana Technology and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Technology and Anam Electronics
The main advantage of trading using opposite Hana Technology and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, Anam 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Hana Technology vs. COWINTECH Co | Hana Technology vs. Young Poong Precision | Hana Technology vs. Seoam Machinery Industry | Hana Technology vs. Haisung TPC Co |
| Anam Electronics vs. AptaBio Therapeutics | Anam Electronics vs. Daewoo SBI SPAC | Anam Electronics vs. Dream Security co | Anam Electronics vs. Microfriend |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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