Correlation Between Hana Microelectronics and China Outfitters

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Can any of the company-specific risk be diversified away by investing in both Hana Microelectronics and China Outfitters 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 China Outfitters 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 China Outfitters Holdings, you can compare the effects of market volatilities on Hana Microelectronics and China Outfitters 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 China Outfitters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Microelectronics and China Outfitters.

Diversification Opportunities for Hana Microelectronics and China Outfitters

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hana and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hana Microelectronics Public and China Outfitters Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Outfitters Holdings 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 China Outfitters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Outfitters Holdings has no effect on the direction of Hana Microelectronics i.e., Hana Microelectronics and China Outfitters go up and down completely randomly.

Pair Corralation between Hana Microelectronics and China Outfitters

If you would invest  59.00  in Hana Microelectronics Public on September 4, 2025 and sell it today you would earn a total of  1.00  from holding Hana Microelectronics Public or generate 1.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Hana Microelectronics Public  vs.  China Outfitters Holdings

 Performance 
       Timeline  
Hana Microelectronics 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hana Microelectronics Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Hana Microelectronics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
China Outfitters Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days China Outfitters Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Outfitters is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hana Microelectronics and China Outfitters Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hana Microelectronics and China Outfitters

The main advantage of trading using opposite Hana Microelectronics and China Outfitters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Microelectronics position performs unexpectedly, China Outfitters 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 China Outfitters will offset losses from the drop in China Outfitters' long position.
The idea behind Hana Microelectronics Public and China Outfitters Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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