Correlation Between Hana Microelectronics and Beryl 8
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Beryl 8 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 Beryl 8 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 Beryl 8 Plus, you can compare the effects of market volatilities on Hana Microelectronics and Beryl 8 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 Beryl 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Beryl 8.
Diversification Opportunities for Hana Microelectronics and Beryl 8
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hana and Beryl is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Beryl 8 Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beryl 8 Plus 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 Beryl 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beryl 8 Plus has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Beryl 8 go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Beryl 8
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to generate 1.58 times more return on investment than Beryl 8. However, Hana Microelectronics is 1.58 times more volatile than Beryl 8 Plus. It trades about -0.32 of its potential returns per unit of risk. Beryl 8 Plus is currently generating about -0.64 per unit of risk. If you would invest 3,775 in Hana Microelectronics Public on August 28, 2024 and sell it today you would lose (925.00) from holding Hana Microelectronics Public or give up 24.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Beryl 8 Plus
Performance |
| Timeline |
| Hana Microelectronics |
| Beryl 8 Plus |
Hana Microelectronics and Beryl 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Beryl 8
The main advantage of trading using opposite Hana Microelectronics and Beryl 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Beryl 8 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 Beryl 8 will offset losses from the drop in Beryl 8's long position.| Hana Microelectronics vs. KCE Electronics Public | Hana Microelectronics vs. Land and Houses | Hana Microelectronics vs. Delta Electronics Public | Hana Microelectronics vs. The Siam Cement |
| Beryl 8 vs. Delta Electronics Public | Beryl 8 vs. Delta Electronics Public | Beryl 8 vs. Airports of Thailand | Beryl 8 vs. Airports of Thailand |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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