Correlation Between Hana Microelectronics and PTG Energy
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and PTG Energy 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 PTG Energy 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 PTG Energy PCL, you can compare the effects of market volatilities on Hana Microelectronics and PTG Energy 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 PTG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and PTG Energy.
Diversification Opportunities for Hana Microelectronics and PTG Energy
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and PTG is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and PTG Energy PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTG Energy PCL 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 PTG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTG Energy PCL has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and PTG Energy go up and down completely randomly.
Pair Corralation between Hana Microelectronics and PTG Energy
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to generate 1.54 times more return on investment than PTG Energy. However, Hana Microelectronics is 1.54 times more volatile than PTG Energy PCL. It trades about -0.05 of its potential returns per unit of risk. PTG Energy PCL is currently generating about -0.2 per unit of risk. If you would invest 2,525 in Hana Microelectronics Public on October 24, 2024 and sell it today you would lose (75.00) from holding Hana Microelectronics Public or give up 2.97% 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. PTG Energy PCL
Performance |
| Timeline |
| Hana Microelectronics |
| PTG Energy PCL |
Hana Microelectronics and PTG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and PTG Energy
The main advantage of trading using opposite Hana Microelectronics and PTG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, PTG Energy 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 PTG Energy will offset losses from the drop in PTG Energy'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 |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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