Correlation Between TISCO Financial and Hana Microelectronics
Can any of the company-specific risk be diversified away by investing in both TISCO Financial 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 TISCO Financial and Hana Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TISCO Financial Group and Hana Microelectronics Public, you can compare the effects of market volatilities on TISCO Financial 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 TISCO Financial with a short position of Hana Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TISCO Financial and Hana Microelectronics.
Diversification Opportunities for TISCO Financial and Hana Microelectronics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TISCO and Hana is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding TISCO Financial Group and Hana Microelectronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Microelectronics and TISCO Financial 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 TISCO Financial Group 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 TISCO Financial i.e., TISCO Financial and Hana Microelectronics go up and down completely randomly.
Pair Corralation between TISCO Financial and Hana Microelectronics
Assuming the 90 days trading horizon TISCO Financial Group is expected to generate 0.32 times more return on investment than Hana Microelectronics. However, TISCO Financial Group is 3.14 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 -0.29 per unit of risk. If you would invest 9,850 in TISCO Financial Group on November 3, 2024 and sell it today you would earn a total of 100.00 from holding TISCO Financial Group or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TISCO Financial Group vs. Hana Microelectronics Public
Performance |
| Timeline |
| TISCO Financial Group |
| Hana Microelectronics |
TISCO Financial and Hana Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TISCO Financial and Hana Microelectronics
The main advantage of trading using opposite TISCO Financial and Hana Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TISCO Financial 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.| TISCO Financial vs. Kasikornbank Public | TISCO Financial vs. Kiatnakin Phatra Bank | TISCO Financial vs. SCB X Public | TISCO Financial vs. Bangkok Bank Public |
| Hana Microelectronics vs. GULF ENERGY DEVELOPMENT NVDR | Hana Microelectronics vs. Kiatnakin Phatra Bank |
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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