Correlation Between Hana Microelectronics and JMT Network
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and JMT Network 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 JMT Network 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 JMT Network Services, you can compare the effects of market volatilities on Hana Microelectronics and JMT Network 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 JMT Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and JMT Network.
Diversification Opportunities for Hana Microelectronics and JMT Network
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and JMT is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and JMT Network Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JMT Network Services 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 JMT Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JMT Network Services has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and JMT Network go up and down completely randomly.
Pair Corralation between Hana Microelectronics and JMT Network
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the JMT Network. In addition to that, Hana Microelectronics is 1.13 times more volatile than JMT Network Services. It trades about -0.32 of its total potential returns per unit of risk. JMT Network Services is currently generating about -0.2 per unit of volatility. If you would invest 2,000 in JMT Network Services on August 28, 2024 and sell it today you would lose (290.00) from holding JMT Network Services or give up 14.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. JMT Network Services
Performance |
| Timeline |
| Hana Microelectronics |
| JMT Network Services |
Hana Microelectronics and JMT Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and JMT Network
The main advantage of trading using opposite Hana Microelectronics and JMT Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, JMT Network 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 JMT Network will offset losses from the drop in JMT Network'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 |
| JMT Network vs. Jay Mart Public | JMT Network vs. Com7 PCL | JMT Network vs. KCE Electronics Public | JMT Network vs. Muangthai Capital 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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