Correlation Between Hana Microelectronics and Bluebik Group
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Bluebik Group 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 Bluebik Group 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 Bluebik Group PCL, you can compare the effects of market volatilities on Hana Microelectronics and Bluebik Group 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 Bluebik Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Bluebik Group.
Diversification Opportunities for Hana Microelectronics and Bluebik Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and Bluebik is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Bluebik Group PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluebik Group PCL 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 Bluebik Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluebik Group PCL has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Bluebik Group go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Bluebik Group
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Bluebik Group. In addition to that, Hana Microelectronics is 1.74 times more volatile than Bluebik Group PCL. It trades about -0.41 of its total potential returns per unit of risk. Bluebik Group PCL is currently generating about 0.09 per unit of volatility. If you would invest 4,200 in Bluebik Group PCL on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Bluebik Group PCL or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Bluebik Group PCL
Performance |
| Timeline |
| Hana Microelectronics |
| Bluebik Group PCL |
Hana Microelectronics and Bluebik Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Bluebik Group
The main advantage of trading using opposite Hana Microelectronics and Bluebik Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Bluebik Group 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 Bluebik Group will offset losses from the drop in Bluebik Group's long position.| Hana Microelectronics vs. AP Public | Hana Microelectronics vs. Jasmine International Public | Hana Microelectronics vs. Asia Plus Group | Hana Microelectronics vs. Bangchak Public |
| Bluebik Group vs. Beryl 8 Plus | Bluebik Group vs. Forth Public | Bluebik Group vs. KCE Electronics Public | Bluebik Group vs. Hana Microelectronics 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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