Correlation Between Berner Kantonalbank and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Berner Kantonalbank and Hon Hai 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 Berner Kantonalbank and Hon Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berner Kantonalbank AG and Hon Hai Precision, you can compare the effects of market volatilities on Berner Kantonalbank and Hon Hai 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 Berner Kantonalbank with a short position of Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berner Kantonalbank and Hon Hai.
Diversification Opportunities for Berner Kantonalbank and Hon Hai
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Berner and Hon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Berner Kantonalbank AG and Hon Hai Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hon Hai Precision and Berner Kantonalbank 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 Berner Kantonalbank AG are associated (or correlated) with Hon Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hon Hai Precision has no effect on the direction of Berner Kantonalbank i.e., Berner Kantonalbank and Hon Hai go up and down completely randomly.
Pair Corralation between Berner Kantonalbank and Hon Hai
Assuming the 90 days trading horizon Berner Kantonalbank is expected to generate 1.71 times less return on investment than Hon Hai. But when comparing it to its historical volatility, Berner Kantonalbank AG is 4.1 times less risky than Hon Hai. It trades about 0.19 of its potential returns per unit of risk. Hon Hai Precision is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,342 in Hon Hai Precision on September 8, 2025 and sell it today you would earn a total of 158.00 from holding Hon Hai Precision or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berner Kantonalbank AG vs. Hon Hai Precision
Performance |
| Timeline |
| Berner Kantonalbank |
| Hon Hai Precision |
Berner Kantonalbank and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berner Kantonalbank and Hon Hai
The main advantage of trading using opposite Berner Kantonalbank and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berner Kantonalbank position performs unexpectedly, Hon Hai 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 Hon Hai will offset losses from the drop in Hon Hai's long position.| Berner Kantonalbank vs. Pulsar Helium | Berner Kantonalbank vs. Tungsten West PLC | Berner Kantonalbank vs. Hardide PLC | Berner Kantonalbank vs. Versarien PLC |
| Hon Hai vs. UNIQA Insurance Group | Hon Hai vs. Dairy Farm International | Hon Hai vs. Cairn Homes PLC | Hon Hai vs. DFS Furniture PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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