Correlation Between Advanced Info and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Advanced Info 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 Advanced Info and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Info Service and Hana Microelectronics Public, you can compare the effects of market volatilities on Advanced Info 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 Advanced Info with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Info and Hana Microelectronics.
Diversification Opportunities for Advanced Info and Hana Microelectronics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Hana is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Info Service and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Advanced Info 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 Advanced Info Service 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 Advanced Info i.e., Advanced Info and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Advanced Info and Hana Microelectronics
Assuming the 90 days trading horizon Advanced Info Service is expected to generate 0.37 times more return on investment than Hana Microelectronics. However, Advanced Info Service is 2.68 times less risky than Hana Microelectronics. It trades about 0.13 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.41 per unit of risk. If you would invest 27,500 in Advanced Info Service on September 1, 2024 and sell it today you would earn a total of 1,000.00 from holding Advanced Info Service or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Info Service vs. Hana Microelectronics Public
Performance |
| Timeline |
| Advanced Info Service |
| Hana Microelectronics |
Advanced Info and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Info and Hana Microelectronics
The main advantage of trading using opposite Advanced Info and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Info 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.| Advanced Info vs. PTT Public | Advanced Info vs. CP ALL Public | Advanced Info vs. Kasikornbank Public | Advanced Info vs. Bangkok Bank Public |
| Hana Microelectronics vs. AP Public | Hana Microelectronics vs. Jasmine International Public | Hana Microelectronics vs. Asia Plus Group | Hana Microelectronics vs. Bangchak Public |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |