Correlation Between Mena Transport and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Mena Transport 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 Mena Transport and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mena Transport Public and Hana Microelectronics Public, you can compare the effects of market volatilities on Mena Transport 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 Mena Transport with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mena Transport and Hana Microelectronics.
Diversification Opportunities for Mena Transport and Hana Microelectronics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mena and Hana is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mena Transport Public and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Mena Transport 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 Mena Transport Public 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 Mena Transport i.e., Mena Transport and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Mena Transport and Hana Microelectronics
Assuming the 90 days trading horizon Mena Transport Public is expected to generate 1.16 times more return on investment than Hana Microelectronics. However, Mena Transport is 1.16 times more volatile than Hana Microelectronics Public. It trades about -0.03 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.07 per unit of risk. If you would invest 189.00 in Mena Transport Public on September 3, 2024 and sell it today you would lose (66.00) from holding Mena Transport Public or give up 34.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mena Transport Public vs. Hana Microelectronics Public
Performance |
| Timeline |
| Mena Transport Public |
| Hana Microelectronics |
Mena Transport and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mena Transport and Hana Microelectronics
The main advantage of trading using opposite Mena Transport and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mena Transport 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.| Mena Transport vs. Mono Next Public | Mena Transport vs. Triple i Logistics | Mena Transport vs. Dynasty Ceramic Public | Mena Transport vs. The Erawan Group |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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