Correlation Between Hana Microelectronics and Singer Thailand
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Singer Thailand 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 Singer Thailand 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 Singer Thailand Public, you can compare the effects of market volatilities on Hana Microelectronics and Singer Thailand 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 Singer Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Singer Thailand.
Diversification Opportunities for Hana Microelectronics and Singer Thailand
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hana and Singer is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Singer Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singer Thailand 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 Singer Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singer Thailand Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Singer Thailand go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Singer Thailand
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Singer Thailand. But the stock apears to be less risky and, when comparing its historical volatility, Hana Microelectronics Public is 44.01 times less risky than Singer Thailand. The stock trades about -0.19 of its potential returns per unit of risk. The Singer Thailand Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 930.00 in Singer Thailand Public on August 28, 2024 and sell it today you would lose (60.00) from holding Singer Thailand Public or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Singer Thailand Public
Performance |
| Timeline |
| Hana Microelectronics |
| Singer Thailand Public |
Hana Microelectronics and Singer Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Singer Thailand
The main advantage of trading using opposite Hana Microelectronics and Singer Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Singer Thailand 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 Singer Thailand will offset losses from the drop in Singer Thailand'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 |
| Singer Thailand vs. SCB X Public | Singer Thailand vs. Kasikornbank Public | Singer Thailand vs. PTT Public | Singer Thailand vs. Kasikornbank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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