Correlation Between Silicon Craft and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Silicon Craft 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 Silicon Craft and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Hana Microelectronics Public, you can compare the effects of market volatilities on Silicon Craft 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 Silicon Craft with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Hana Microelectronics.
Diversification Opportunities for Silicon Craft and Hana Microelectronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and Hana is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Silicon Craft 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 Silicon Craft Technology 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 Silicon Craft i.e., Silicon Craft and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Silicon Craft and Hana Microelectronics
Assuming the 90 days trading horizon Silicon Craft Technology is expected to generate 0.85 times more return on investment than Hana Microelectronics. However, Silicon Craft Technology is 1.17 times less risky than Hana Microelectronics. It trades about -0.08 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 794.00 in Silicon Craft Technology on September 3, 2024 and sell it today you would lose (384.00) from holding Silicon Craft Technology or give up 48.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Hana Microelectronics Public
Performance |
| Timeline |
| Silicon Craft Technology |
| Hana Microelectronics |
Silicon Craft and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Hana Microelectronics
The main advantage of trading using opposite Silicon Craft and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft 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.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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