Correlation Between Hana Microelectronics and Sun Vending
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Sun Vending 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 Sun Vending 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 Sun Vending Technology, you can compare the effects of market volatilities on Hana Microelectronics and Sun Vending 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 Sun Vending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Sun Vending.
Diversification Opportunities for Hana Microelectronics and Sun Vending
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hana and Sun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Sun Vending Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Vending 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 Sun Vending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Vending Technology has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Sun Vending go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Sun Vending
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Sun Vending. In addition to that, Hana Microelectronics is 1.04 times more volatile than Sun Vending Technology. It trades about -0.14 of its total potential returns per unit of risk. Sun Vending Technology is currently generating about -0.12 per unit of volatility. If you would invest 145.00 in Sun Vending Technology on October 21, 2024 and sell it today you would lose (7.00) from holding Sun Vending Technology or give up 4.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Sun Vending Technology
Performance |
| Timeline |
| Hana Microelectronics |
| Sun Vending Technology |
Hana Microelectronics and Sun Vending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Sun Vending
The main advantage of trading using opposite Hana Microelectronics and Sun Vending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Sun Vending 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 Sun Vending will offset losses from the drop in Sun Vending'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 |
| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
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..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |