Correlation Between Hana Microelectronics and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Silicon Craft 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 Silicon Craft 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 Silicon Craft Technology, you can compare the effects of market volatilities on Hana Microelectronics and Silicon Craft 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 Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Silicon Craft.
Diversification Opportunities for Hana Microelectronics and Silicon Craft
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Silicon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology 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 Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Silicon Craft go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Silicon Craft
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Silicon Craft. In addition to that, Hana Microelectronics is 1.17 times more volatile than Silicon Craft Technology. It trades about -0.07 of its total potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.08 per unit of volatility. If you would invest 794.00 in Silicon Craft Technology on September 3, 2024 and sell it today you would lose (384.00) from holding Silicon Craft Technology or give up 48.36% 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. Silicon Craft Technology
Performance |
| Timeline |
| Hana Microelectronics |
| Silicon Craft Technology |
Hana Microelectronics and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Silicon Craft
The main advantage of trading using opposite Hana Microelectronics and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft'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 |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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