Correlation Between Hana Microelectronics and Ekachai Medical
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Ekachai Medical 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 Ekachai Medical 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 Ekachai Medical Care, you can compare the effects of market volatilities on Hana Microelectronics and Ekachai Medical 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 Ekachai Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Ekachai Medical.
Diversification Opportunities for Hana Microelectronics and Ekachai Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Ekachai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Ekachai Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekachai Medical Care 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 Ekachai Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekachai Medical Care has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Ekachai Medical go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Ekachai Medical
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Ekachai Medical. In addition to that, Hana Microelectronics is 4.1 times more volatile than Ekachai Medical Care. It trades about -0.32 of its total potential returns per unit of risk. Ekachai Medical Care is currently generating about -0.11 per unit of volatility. If you would invest 665.00 in Ekachai Medical Care on August 29, 2024 and sell it today you would lose (15.00) from holding Ekachai Medical Care or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Ekachai Medical Care
Performance |
| Timeline |
| Hana Microelectronics |
| Ekachai Medical Care |
Hana Microelectronics and Ekachai Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Ekachai Medical
The main advantage of trading using opposite Hana Microelectronics and Ekachai Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Ekachai Medical 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 Ekachai Medical will offset losses from the drop in Ekachai Medical'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 |
| Ekachai Medical vs. Chularat Hospital Public | Ekachai Medical vs. Bangkok Chain Hospital | Ekachai Medical vs. Bangkok Dusit Medical | Ekachai Medical vs. Rajthanee Hospital 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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