Correlation Between Hana Microelectronics and Information
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Information 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 Information 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 Information and Communication, you can compare the effects of market volatilities on Hana Microelectronics and Information 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 Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Information.
Diversification Opportunities for Hana Microelectronics and Information
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and Information is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Information and Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information and Comm 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 Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information and Comm has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Information go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Information
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Information. In addition to that, Hana Microelectronics is 1.15 times more volatile than Information and Communication. It trades about -0.09 of its total potential returns per unit of risk. Information and Communication is currently generating about -0.02 per unit of volatility. If you would invest 234.00 in Information and Communication on August 28, 2024 and sell it today you would lose (20.00) from holding Information and Communication or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Information and Communication
Performance |
| Timeline |
| Hana Microelectronics |
| Information and Comm |
Hana Microelectronics and Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Information
The main advantage of trading using opposite Hana Microelectronics and Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Information 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 Information will offset losses from the drop in Information'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 |
| Information vs. Hana Microelectronics Public | Information vs. Ekachai Medical Care | Information vs. Megachem Public | Information vs. Diamond Building Products |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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