Correlation Between Hana Microelectronics and Siri Prime
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Siri Prime 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 Siri Prime 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 Siri Prime Office, you can compare the effects of market volatilities on Hana Microelectronics and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Siri Prime.
Diversification Opportunities for Hana Microelectronics and Siri Prime
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and Siri is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Siri Prime go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Siri Prime
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Siri Prime. In addition to that, Hana Microelectronics is 1.84 times more volatile than Siri Prime Office. It trades about -0.07 of its total potential returns per unit of risk. Siri Prime Office is currently generating about 0.01 per unit of volatility. If you would invest 177.00 in Siri Prime Office on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Siri Prime Office or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Siri Prime Office
Performance |
| Timeline |
| Hana Microelectronics |
| Siri Prime Office |
Hana Microelectronics and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Siri Prime
The main advantage of trading using opposite Hana Microelectronics and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime's long position.| Hana Microelectronics vs. AP Public | Hana Microelectronics vs. Jasmine International Public | Hana Microelectronics vs. Asia Plus Group | Hana Microelectronics vs. Bangchak Public |
| Siri Prime vs. Eastern Star Real | Siri Prime vs. Ananda Development Public | Siri Prime vs. Better World Green | Siri Prime vs. Dcon Products 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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