Correlation Between Hana Microelectronics and CI Group
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and CI 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 CI 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 CI Group Public, you can compare the effects of market volatilities on Hana Microelectronics and CI 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 CI Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and CI Group.
Diversification Opportunities for Hana Microelectronics and CI Group
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and CIG is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and CI Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Group Public 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 CI Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Group Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and CI Group go up and down completely randomly.
Pair Corralation between Hana Microelectronics and CI Group
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the CI Group. But the stock apears to be less risky and, when comparing its historical volatility, Hana Microelectronics Public is 8.42 times less risky than CI Group. The stock trades about -0.07 of its potential returns per unit of risk. The CI Group Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4.00 in CI Group Public on January 14, 2025 and sell it today you would earn a total of 0.00 from holding CI Group Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. CI Group Public
Performance |
| Timeline |
| Hana Microelectronics |
| CI Group Public |
Hana Microelectronics and CI Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and CI Group
The main advantage of trading using opposite Hana Microelectronics and CI Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, CI 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 CI Group will offset losses from the drop in CI Group'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 |
| CI Group vs. ASIA Capital Group | CI Group vs. Cho Thavee Public | CI Group vs. CMO Public | CI Group vs. CPR Gomu Industrial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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