Correlation Between Hana Microelectronics and Dynasty Ceramic
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Dynasty Ceramic 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 Dynasty Ceramic 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 Dynasty Ceramic Public, you can compare the effects of market volatilities on Hana Microelectronics and Dynasty Ceramic 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 Dynasty Ceramic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Dynasty Ceramic.
Diversification Opportunities for Hana Microelectronics and Dynasty Ceramic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Dynasty is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Dynasty Ceramic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynasty Ceramic 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 Dynasty Ceramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynasty Ceramic Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Dynasty Ceramic go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Dynasty Ceramic
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Dynasty Ceramic. In addition to that, Hana Microelectronics is 2.85 times more volatile than Dynasty Ceramic Public. It trades about -0.38 of its total potential returns per unit of risk. Dynasty Ceramic Public is currently generating about 0.12 per unit of volatility. If you would invest 180.00 in Dynasty Ceramic Public on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Dynasty Ceramic Public or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Dynasty Ceramic Public
Performance |
| Timeline |
| Hana Microelectronics |
| Dynasty Ceramic Public |
Hana Microelectronics and Dynasty Ceramic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Dynasty Ceramic
The main advantage of trading using opposite Hana Microelectronics and Dynasty Ceramic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Dynasty Ceramic 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 Dynasty Ceramic will offset losses from the drop in Dynasty Ceramic'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 |
| Dynasty Ceramic vs. Land and Houses | Dynasty Ceramic vs. AP Public | Dynasty Ceramic vs. Charoen Pokphand Foods | Dynasty Ceramic 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |