Correlation Between Land and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Land and Hana Microelectronics 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 Land and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land and Houses and Hana Microelectronics Public, you can compare the effects of market volatilities on Land and Hana Microelectronics 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 Land with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land and Hana Microelectronics.
Diversification Opportunities for Land and Hana Microelectronics
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Land and Hana is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Land and Houses and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Land 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 Land and Houses are associated (or correlated) with Hana Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Microelectronics has no effect on the direction of Land i.e., Land and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Land and Hana Microelectronics
Assuming the 90 days horizon Land and Houses is expected to generate 0.38 times more return on investment than Hana Microelectronics. However, Land and Houses is 2.63 times less risky than Hana Microelectronics. It trades about -0.11 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.38 per unit of risk. If you would invest 575.00 in Land and Houses on August 25, 2024 and sell it today you would lose (20.00) from holding Land and Houses or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land and Houses vs. Hana Microelectronics Public
Performance |
| Timeline |
| Land and Houses |
| Hana Microelectronics |
Land and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land and Hana Microelectronics
The main advantage of trading using opposite Land and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land position performs unexpectedly, Hana Microelectronics 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 Hana Microelectronics will offset losses from the drop in Hana Microelectronics' long position.The idea behind Land and Houses and Hana Microelectronics Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hana Microelectronics vs. KCE Electronics Public | Hana Microelectronics vs. Land and Houses | Hana Microelectronics vs. Delta Electronics Public | Hana Microelectronics vs. The Siam Cement |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |