Correlation Between Antec and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Antec and Hon Hai 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 Antec and Hon Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antec Inc and Hon Hai Precision, you can compare the effects of market volatilities on Antec and Hon Hai 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 Antec with a short position of Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antec and Hon Hai.
Diversification Opportunities for Antec and Hon Hai
Poor diversification
The 3 months correlation between Antec and Hon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Antec Inc and Hon Hai Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hon Hai Precision and Antec 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 Antec Inc are associated (or correlated) with Hon Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hon Hai Precision has no effect on the direction of Antec i.e., Antec and Hon Hai go up and down completely randomly.
Pair Corralation between Antec and Hon Hai
Assuming the 90 days trading horizon Antec Inc is expected to under-perform the Hon Hai. In addition to that, Antec is 1.75 times more volatile than Hon Hai Precision. It trades about -0.16 of its total potential returns per unit of risk. Hon Hai Precision is currently generating about -0.22 per unit of volatility. If you would invest 19,500 in Hon Hai Precision on October 9, 2024 and sell it today you would lose (1,050) from holding Hon Hai Precision or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antec Inc vs. Hon Hai Precision
Performance |
| Timeline |
| Antec Inc |
| Hon Hai Precision |
Antec and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antec and Hon Hai
The main advantage of trading using opposite Antec and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antec position performs unexpectedly, Hon Hai 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 Hon Hai will offset losses from the drop in Hon Hai's long position.| Antec vs. Shan Loong Transportation Co | Antec vs. Tai Tung Communication | Antec vs. Chinese Maritime Transport | Antec vs. Formosa International Hotels |
| Hon Hai vs. United Microelectronics | Hon Hai vs. MediaTek | Hon Hai vs. Chunghwa Telecom Co | Hon Hai vs. Delta Electronics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |