Correlation Between Hanpin Electron and Siward Crystal

Can any of the company-specific risk be diversified away by investing in both Hanpin Electron and Siward Crystal 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 Hanpin Electron and Siward Crystal into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Hanpin Electron and Siward Crystal

-0.7

Correlation Coefficient

Hanpin Electron  Siward Crystal

Excellent diversification

The 3 months correlation between Hanpin and Siward is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hanpin Electron Co and Siward Crystal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siward Crystal Technology and Hanpin Electron 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 Hanpin Electron Co are associated (or correlated) with Siward Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siward Crystal Technology has no effect on the direction of Hanpin Electron i.e., Hanpin Electron and Siward Crystal go up and down completely randomly.

Pair Corralation between Hanpin Electron and Siward Crystal

Assuming the 90 days trading horizon Hanpin Electron Co is expected to generate 1.36 times more return on investment than Siward Crystal. However, Hanpin Electron is 1.36 times more volatile than Siward Crystal Technology. It trades about -0.17 of its potential returns per unit of risk. Siward Crystal Technology is currently generating about -0.26 per unit of risk. If you would invest  5,640  in Hanpin Electron Co on October 11, 2024 and sell it today you would lose (310.00) from holding Hanpin Electron Co or give up 5.5% of portfolio value over 90 days.

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

Hanpin Electron Co  vs.  Siward Crystal Technology

Hanpin Electron

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hanpin Electron Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Hanpin Electron showed solid returns over the last few months and may actually be approaching a breakup point.

Siward Crystal Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siward Crystal Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Hanpin Electron and Siward Crystal

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

The idea behind Hanpin Electron Co and Siward Crystal Technology 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.