Correlation Between Hana Microelectronics and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Stock Exchange 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 Stock Exchange 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 Stock Exchange Of, you can compare the effects of market volatilities on Hana Microelectronics and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Stock Exchange.
Diversification Opportunities for Hana Microelectronics and Stock Exchange
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Stock is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Stock Exchange go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Stock Exchange
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Stock Exchange. In addition to that, Hana Microelectronics is 3.57 times more volatile than Stock Exchange Of. It trades about -0.2 of its total potential returns per unit of risk. Stock Exchange Of is currently generating about 0.08 per unit of volatility. If you would invest 130,641 in Stock Exchange Of on September 19, 2024 and sell it today you would earn a total of 8,916 from holding Stock Exchange Of or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Stock Exchange Of
Performance |
| Timeline |
Hana Microelectronics and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Hana Microelectronics Public
Pair trading matchups for Hana Microelectronics
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with Hana Microelectronics and Stock Exchange
The main advantage of trading using opposite Hana Microelectronics and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange'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 |
| Stock Exchange vs. Muang Thai Insurance | Stock Exchange vs. Hana Microelectronics Public | Stock Exchange vs. Union Petrochemical Public | Stock Exchange vs. Symphony Communication 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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