Correlation Between Hana Microelectronics and Synnex Public
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and Synnex Public 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 Synnex Public 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 Synnex Public, you can compare the effects of market volatilities on Hana Microelectronics and Synnex Public 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 Synnex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and Synnex Public.
Diversification Opportunities for Hana Microelectronics and Synnex Public
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hana and Synnex is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and Synnex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex 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 Synnex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Public has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and Synnex Public go up and down completely randomly.
Pair Corralation between Hana Microelectronics and Synnex Public
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the Synnex Public. In addition to that, Hana Microelectronics is 1.12 times more volatile than Synnex Public. It trades about -0.05 of its total potential returns per unit of risk. Synnex Public is currently generating about -0.02 per unit of volatility. If you would invest 1,499 in Synnex Public on November 27, 2024 and sell it today you would lose (459.00) from holding Synnex Public or give up 30.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hana Microelectronics Public vs. Synnex Public
Performance |
| Timeline |
| Hana Microelectronics |
| Synnex Public |
Hana Microelectronics and Synnex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and Synnex Public
The main advantage of trading using opposite Hana Microelectronics and Synnex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, Synnex Public 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 Synnex Public will offset losses from the drop in Synnex Public'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 |
| Synnex Public vs. Com7 PCL | Synnex Public vs. Jay Mart Public | Synnex Public vs. SiS Distribution Public | Synnex Public vs. KCE Electronics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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