Correlation Between Hannstar Display and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Hannstar Display and Amtran 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 Hannstar Display and Amtran Technology 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 Amtran Technology Co, you can compare the effects of market volatilities on Hannstar Display and Amtran 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 Hannstar Display with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannstar Display and Amtran Technology.
Diversification Opportunities for Hannstar Display and Amtran Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hannstar and Amtran is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hannstar Display Corp and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology 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 Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Hannstar Display i.e., Hannstar Display and Amtran Technology go up and down completely randomly.
Pair Corralation between Hannstar Display and Amtran Technology
Assuming the 90 days trading horizon Hannstar Display Corp is expected to generate 0.65 times more return on investment than Amtran Technology. However, Hannstar Display Corp is 1.54 times less risky than Amtran Technology. It trades about -0.14 of its potential returns per unit of risk. Amtran Technology Co is currently generating about -0.1 per unit of risk. If you would invest 916.00 in Hannstar Display Corp on September 25, 2024 and sell it today you would lose (108.00) from holding Hannstar Display Corp or give up 11.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Hannstar Display Corp vs. Amtran Technology Co
Performance |
Timeline |
Hannstar Display Corp |
Amtran Technology |
Hannstar Display and Amtran Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hannstar Display and Amtran Technology
The main advantage of trading using opposite Hannstar Display and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannstar Display position performs unexpectedly, Amtran 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.Hannstar Display vs. Century Wind Power | Hannstar Display vs. Green World Fintech | Hannstar Display vs. Ingentec | Hannstar Display vs. Chaheng Precision Co |
Amtran Technology vs. Johnson Health Tech | Amtran Technology vs. Chung Lien Transportation | Amtran Technology vs. RiTdisplay Corp | Amtran Technology vs. Hannstar Display Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |