Correlation Between Superior Plus and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Hana Microelectronics 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 Superior Plus and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Hana Microelectronics Public, you can compare the effects of market volatilities on Superior Plus and Hana Microelectronics 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 Superior Plus with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Hana Microelectronics.
Diversification Opportunities for Superior Plus and Hana Microelectronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and Hana is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Superior Plus 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 Superior Plus Corp are associated (or correlated) with Hana Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Microelectronics has no effect on the direction of Superior Plus i.e., Superior Plus and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Superior Plus and Hana Microelectronics
Assuming the 90 days horizon Superior Plus is expected to generate 3.95 times less return on investment than Hana Microelectronics. But when comparing it to its historical volatility, Superior Plus Corp is 5.02 times less risky than Hana Microelectronics. It trades about 0.11 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Hana Microelectronics Public on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Hana Microelectronics Public or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Hana Microelectronics Public
Performance |
| Timeline |
| Superior Plus Corp |
| Hana Microelectronics |
Superior Plus and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Hana Microelectronics
The main advantage of trading using opposite Superior Plus and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Hana Microelectronics 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 Hana Microelectronics will offset losses from the drop in Hana Microelectronics' long position.| Superior Plus vs. AIR PRODCHEMICALS | Superior Plus vs. Suntory Beverage Food | Superior Plus vs. Molson Coors Beverage | Superior Plus vs. Monster Beverage Corp |
| Hana Microelectronics vs. Benchmark Electronics | Hana Microelectronics vs. Meiko Electronics Co | Hana Microelectronics vs. Superior Plus Corp | Hana Microelectronics vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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