Correlation Between Hana Microelectronics and TTM Technologies
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and TTM Technologies 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 Microelectronics and TTM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Microelectronics Public and TTM Technologies, you can compare the effects of market volatilities on Hana Microelectronics and TTM Technologies 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 Microelectronics with a short position of TTM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and TTM Technologies.
Diversification Opportunities for Hana Microelectronics and TTM Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and TTM is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and TTM Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTM Technologies and Hana Microelectronics 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 Microelectronics Public are associated (or correlated) with TTM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTM Technologies has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and TTM Technologies go up and down completely randomly.
Pair Corralation between Hana Microelectronics and TTM Technologies
Assuming the 90 days trading horizon Hana Microelectronics is expected to generate 3.38 times less return on investment than TTM Technologies. In addition to that, Hana Microelectronics is 1.97 times more volatile than TTM Technologies. It trades about 0.02 of its total potential returns per unit of risk. TTM Technologies is currently generating about 0.1 per unit of volatility. If you would invest 1,700 in TTM Technologies on September 12, 2024 and sell it today you would earn a total of 600.00 from holding TTM Technologies or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. TTM Technologies
Performance |
| Timeline |
| Hana Microelectronics |
| TTM Technologies |
Hana Microelectronics and TTM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and TTM Technologies
The main advantage of trading using opposite Hana Microelectronics and TTM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, TTM Technologies 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 TTM Technologies will offset losses from the drop in TTM Technologies' long position.| Hana Microelectronics vs. Benchmark Electronics | Hana Microelectronics vs. Meiko Electronics Co | Hana Microelectronics vs. Superior Plus Corp | Hana Microelectronics vs. SIVERS SEMICONDUCTORS AB |
| TTM Technologies vs. Benchmark Electronics | TTM Technologies vs. Meiko Electronics Co | TTM Technologies vs. Superior Plus Corp | TTM Technologies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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