Correlation Between Hana Microelectronics and Karmarts Public
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Karmarts 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 Karmarts 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 Karmarts Public, you can compare the effects of market volatilities on Hana Microelectronics and Karmarts 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 Karmarts Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Karmarts Public.
Diversification Opportunities for Hana Microelectronics and Karmarts Public
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Karmarts is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Karmarts Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karmarts 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 Karmarts Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karmarts Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Karmarts Public go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Karmarts Public
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Karmarts Public. In addition to that, Hana Microelectronics is 1.0 times more volatile than Karmarts Public. It trades about -0.19 of its total potential returns per unit of risk. Karmarts Public is currently generating about -0.06 per unit of volatility. If you would invest 1,300 in Karmarts Public on August 28, 2024 and sell it today you would lose (170.00) from holding Karmarts Public or give up 13.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Karmarts Public
Performance |
| Timeline |
| Hana Microelectronics |
| Karmarts Public |
Hana Microelectronics and Karmarts Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Karmarts Public
The main advantage of trading using opposite Hana Microelectronics and Karmarts Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Karmarts 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 Karmarts Public will offset losses from the drop in Karmarts Public'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 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |