Correlation Between Thai Stanley and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both Thai Stanley 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 Thai Stanley and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Stanley Electric and Hana Microelectronics Public, you can compare the effects of market volatilities on Thai Stanley 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 Thai Stanley with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Stanley and Hana Microelectronics.
Diversification Opportunities for Thai Stanley and Hana Microelectronics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thai and Hana is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Thai Stanley Electric and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and Thai Stanley 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 Thai Stanley Electric 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 Thai Stanley i.e., Thai Stanley and Hana Microelectronics go up and down completely randomly.
Pair Corralation between Thai Stanley and Hana Microelectronics
Assuming the 90 days trading horizon Thai Stanley Electric is expected to generate 0.15 times more return on investment than Hana Microelectronics. However, Thai Stanley Electric is 6.66 times less risky than Hana Microelectronics. It trades about 0.0 of its potential returns per unit of risk. Hana Microelectronics Public is currently generating about -0.41 per unit of risk. If you would invest 21,800 in Thai Stanley Electric on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Thai Stanley Electric or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Stanley Electric vs. Hana Microelectronics Public
Performance |
| Timeline |
| Thai Stanley Electric |
| Hana Microelectronics |
Thai Stanley and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Stanley and Hana Microelectronics
The main advantage of trading using opposite Thai Stanley and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Stanley 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.| Thai Stanley vs. TRC Construction Public | Thai Stanley vs. Bangkok Expressway and | Thai Stanley vs. Lohakit Metal Public | Thai Stanley vs. Gunkul Engineering 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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