Correlation Between Hana Microelectronics and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and BPS 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 Hana Microelectronics and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Microelectronics Public and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Hana Microelectronics and BPS 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 Hana Microelectronics with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and BPS TECHNOLOGY.
Diversification Opportunities for Hana Microelectronics and BPS TECHNOLOGY
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and BPS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Hana Microelectronics 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 Hana Microelectronics Public are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Hana Microelectronics and BPS TECHNOLOGY
Assuming the 90 days trading horizon Hana Microelectronics Public is expected to under-perform the BPS TECHNOLOGY. In addition to that, Hana Microelectronics is 1.38 times more volatile than BPS TECHNOLOGY PUBLIC. It trades about -0.14 of its total potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about 0.1 per unit of volatility. If you would invest 50.00 in BPS TECHNOLOGY PUBLIC on December 28, 2024 and sell it today you would earn a total of 7.00 from holding BPS TECHNOLOGY PUBLIC or generate 14.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hana Microelectronics Public vs. BPS TECHNOLOGY PUBLIC
Performance |
Timeline |
Hana Microelectronics |
BPS TECHNOLOGY PUBLIC |
Hana Microelectronics and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hana Microelectronics and BPS TECHNOLOGY
The main advantage of trading using opposite Hana Microelectronics and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, BPS 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.Hana Microelectronics vs. KCE Electronics Public | Hana Microelectronics vs. Land and Houses | Hana Microelectronics vs. Delta Electronics Public | Hana Microelectronics vs. The Siam Cement |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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