Correlation Between Hannstar Display and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Hannstar Display and Ibase Gaming 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 Hannstar Display and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannstar Display Corp and Ibase Gaming, you can compare the effects of market volatilities on Hannstar Display and Ibase Gaming 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 Hannstar Display with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannstar Display and Ibase Gaming.
Diversification Opportunities for Hannstar Display and Ibase Gaming
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hannstar and Ibase is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hannstar Display Corp and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and Hannstar Display 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 Hannstar Display Corp are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Hannstar Display i.e., Hannstar Display and Ibase Gaming go up and down completely randomly.
Pair Corralation between Hannstar Display and Ibase Gaming
Assuming the 90 days trading horizon Hannstar Display Corp is expected to generate 0.82 times more return on investment than Ibase Gaming. However, Hannstar Display Corp is 1.22 times less risky than Ibase Gaming. It trades about 0.05 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.04 per unit of risk. If you would invest 808.00 in Hannstar Display Corp on December 23, 2024 and sell it today you would earn a total of 34.00 from holding Hannstar Display Corp or generate 4.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hannstar Display Corp vs. Ibase Gaming
Performance |
Timeline |
Hannstar Display Corp |
Ibase Gaming |
Hannstar Display and Ibase Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hannstar Display and Ibase Gaming
The main advantage of trading using opposite Hannstar Display and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannstar Display position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.Hannstar Display vs. AU Optronics | Hannstar Display vs. Innolux Corp | Hannstar Display vs. Winbond Electronics Corp | Hannstar Display vs. Qisda Corp |
Ibase Gaming vs. Li Kang Biomedical | Ibase Gaming vs. Ligitek Electronics Co | Ibase Gaming vs. Youngtek Electronics | Ibase Gaming vs. Jia Jie Biomedical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |