Correlation Between Hana Microelectronics and Land
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Land 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 Land 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 Land and Houses, you can compare the effects of market volatilities on Hana Microelectronics and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Land.
Diversification Opportunities for Hana Microelectronics and Land
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hana and Land is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Land go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Land
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Land. In addition to that, Hana Microelectronics is 2.63 times more volatile than Land and Houses. It trades about -0.38 of its total potential returns per unit of risk. Land and Houses is currently generating about -0.11 per unit of volatility. If you would invest 575.00 in Land and Houses on August 25, 2024 and sell it today you would lose (20.00) from holding Land and Houses or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Land and Houses
Performance |
| Timeline |
| Hana Microelectronics |
| Land and Houses |
Hana Microelectronics and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Land
The main advantage of trading using opposite Hana Microelectronics and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Land 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 Land will offset losses from the drop in Land'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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