Correlation Between Hana Microelectronics and BG Foods
Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and BG Foods 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 BG Foods 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 BG Foods, you can compare the effects of market volatilities on Hana Microelectronics and BG Foods 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 BG Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and BG Foods.
Diversification Opportunities for Hana Microelectronics and BG Foods
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and BGS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and BG Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BG Foods 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 BG Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BG Foods has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and BG Foods go up and down completely randomly.
Pair Corralation between Hana Microelectronics and BG Foods
Assuming the 90 days horizon Hana Microelectronics is expected to generate 7.52 times less return on investment than BG Foods. But when comparing it to its historical volatility, Hana Microelectronics Public is 18.23 times less risky than BG Foods. It trades about 0.13 of its potential returns per unit of risk. BG Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 442.00 in BG Foods on September 11, 2025 and sell it today you would earn a total of 39.00 from holding BG Foods or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Microelectronics Public vs. BG Foods
Performance |
| Timeline |
| Hana Microelectronics |
| BG Foods |
Hana Microelectronics and BG Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Microelectronics and BG Foods
The main advantage of trading using opposite Hana Microelectronics and BG Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, BG Foods 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 BG Foods will offset losses from the drop in BG Foods' long position.| Hana Microelectronics vs. Asure Software | Hana Microelectronics vs. CarsalesCom Ltd ADR | Hana Microelectronics vs. Sunny Optical Technology | Hana Microelectronics vs. National Retail Properties |
| BG Foods vs. USANA Health Sciences | BG Foods vs. BRC Inc | BG Foods vs. Westrock Coffee | BG Foods vs. Lifeway Foods |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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