Correlation Between Hana Microelectronics and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Jasmine Telecom 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 Jasmine Telecom 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 Jasmine Telecom Systems, you can compare the effects of market volatilities on Hana Microelectronics and Jasmine Telecom 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 Jasmine Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Jasmine Telecom.
Diversification Opportunities for Hana Microelectronics and Jasmine Telecom
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Jasmine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Jasmine Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine Telecom Systems 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 Jasmine Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine Telecom Systems has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Jasmine Telecom
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Jasmine Telecom. In addition to that, Hana Microelectronics is 1.22 times more volatile than Jasmine Telecom Systems. It trades about -0.39 of its total potential returns per unit of risk. Jasmine Telecom Systems is currently generating about -0.11 per unit of volatility. If you would invest 7,000 in Jasmine Telecom Systems on September 2, 2024 and sell it today you would lose (525.00) from holding Jasmine Telecom Systems or give up 7.5% 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. Jasmine Telecom Systems
Performance |
| Timeline |
| Hana Microelectronics |
| Jasmine Telecom Systems |
Hana Microelectronics and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Jasmine Telecom
The main advantage of trading using opposite Hana Microelectronics and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Jasmine Telecom 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 Jasmine Telecom will offset losses from the drop in Jasmine Telecom'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 |
| Jasmine Telecom vs. AP Public | Jasmine Telecom vs. Jasmine International Public | Jasmine Telecom vs. Asia Plus Group | Jasmine Telecom 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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