Correlation Between Hana Microelectronics and Forth Public
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Forth Public 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 Forth Public 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 Forth Public, you can compare the effects of market volatilities on Hana Microelectronics and Forth Public 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 Forth Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Forth Public.
Diversification Opportunities for Hana Microelectronics and Forth Public
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Forth is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Forth Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth 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 Forth Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Forth Public go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Forth Public
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to generate 0.85 times more return on investment than Forth Public. However, Hana Microelectronics Public is 1.17 times less risky than Forth Public. It trades about -0.03 of its potential returns per unit of risk. Forth Public is currently generating about -0.05 per unit of risk. If you would invest 5,220 in Hana Microelectronics Public on August 30, 2024 and sell it today you would lose (2,420) from holding Hana Microelectronics Public or give up 46.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Forth Public
Performance |
| Timeline |
| Hana Microelectronics |
| Forth Public |
Hana Microelectronics and Forth Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Forth Public
The main advantage of trading using opposite Hana Microelectronics and Forth Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Forth Public 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 Forth Public will offset losses from the drop in Forth Public'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 |
| Forth Public vs. AP Public | Forth Public vs. Jasmine International Public | Forth Public vs. Asia Plus Group | Forth Public vs. Bangchak 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |