Correlation Between Anam Electronics and Hana Technology

Can any of the company-specific risk be diversified away by investing in both Anam Electronics and Hana Technology 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 Anam Electronics and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anam Electronics Co and Hana Technology Co, you can compare the effects of market volatilities on Anam Electronics and Hana Technology 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 Anam Electronics with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and Hana Technology.

Diversification Opportunities for Anam Electronics and Hana Technology

0.52

Correlation Coefficient

Anam Electronics  Hana Technology

Very weak diversification

The 3 months correlation between Anam and Hana is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and Anam Electronics 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 Anam Electronics Co are associated (or correlated) with Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of Anam Electronics i.e., Anam Electronics and Hana Technology go up and down completely randomly.

Pair Corralation between Anam Electronics and Hana Technology

Assuming the 90 days trading horizon Anam Electronics Co is expected to generate 1.14 times more return on investment than Hana Technology. However, Anam Electronics is 1.14 times more volatile than Hana Technology Co. It trades about 0.04 of its potential returns per unit of risk. Hana Technology Co is currently generating about 0.04 per unit of risk. If you would invest  136,500  in Anam Electronics Co on December 31, 2024 and sell it today you would earn a total of  7,200  from holding Anam Electronics Co or generate 5.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Anam Electronics Co  vs.  Hana Technology Co

Anam Electronics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anam Electronics Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Anam Electronics may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Hana Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hana Technology Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hana Technology may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Anam Electronics and Hana Technology

The main advantage of trading using opposite Anam Electronics and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics position performs unexpectedly, Hana Technology 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 Technology will offset losses from the drop in Hana Technology's long position.

The idea behind Anam Electronics Co and Hana Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.