Correlation Between Hana Microelectronics and Megachem Public
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Megachem 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 Megachem 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 Megachem Public, you can compare the effects of market volatilities on Hana Microelectronics and Megachem 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 Megachem Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Megachem Public.
Diversification Opportunities for Hana Microelectronics and Megachem Public
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and Megachem is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Megachem Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megachem 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 Megachem Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megachem Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Megachem Public go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Megachem Public
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Megachem Public. In addition to that, Hana Microelectronics is 1.48 times more volatile than Megachem Public. It trades about -0.31 of its total potential returns per unit of risk. Megachem Public is currently generating about -0.18 per unit of volatility. If you would invest 242.00 in Megachem Public on August 25, 2024 and sell it today you would lose (38.00) from holding Megachem Public or give up 15.7% 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. Megachem Public
Performance |
| Timeline |
| Hana Microelectronics |
| Megachem Public |
Hana Microelectronics and Megachem Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Megachem Public
The main advantage of trading using opposite Hana Microelectronics and Megachem Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Megachem 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 Megachem Public will offset losses from the drop in Megachem 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 |
| Megachem Public vs. Lalin Property Public | Megachem Public vs. Information and Communication | Megachem Public vs. MCS Steel Public | Megachem Public vs. Mega Lifesciences 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |