Correlation Between Megachem Public and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Megachem Public 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 Megachem Public and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Megachem Public and Hana Microelectronics Public, you can compare the effects of market volatilities on Megachem Public 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 Megachem Public with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megachem Public and Hana Microelectronics.
Diversification Opportunities for Megachem Public and Hana Microelectronics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Megachem and Hana is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Megachem 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 Megachem Public 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 Megachem 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 Megachem Public i.e., Megachem Public and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Megachem Public and Hana Microelectronics
Assuming the 90 days trading horizon Megachem Public is expected to generate 0.73 times more return on investment than Hana Microelectronics. However, Megachem Public is 1.37 times less risky than Hana Microelectronics. It trades about -0.16 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.32 per unit of risk. If you would invest 224.00 in Megachem Public on August 29, 2024 and sell it today you would lose (22.00) from holding Megachem Public or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Megachem Public vs. Hana Microelectronics Public
Performance |
| Timeline |
| Megachem Public |
| Hana Microelectronics |
Megachem Public and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megachem Public and Hana Microelectronics
The main advantage of trading using opposite Megachem Public and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megachem Public 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.| Megachem Public vs. Lalin Property Public | Megachem Public vs. Information and Communication | Megachem Public vs. MCS Steel Public | Megachem Public vs. Mega Lifesciences Public |
| Hana Microelectronics vs. AP Public | Hana Microelectronics vs. Jasmine International Public | Hana Microelectronics vs. Asia Plus Group | Hana Microelectronics vs. Bangchak 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |