Correlation Between Stoke Therapeutics and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics 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 Stoke Therapeutics and Hon Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Hon Hai Precision, you can compare the effects of market volatilities on Stoke Therapeutics 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 Stoke Therapeutics with a short position of Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Hon Hai.
Diversification Opportunities for Stoke Therapeutics and Hon Hai
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stoke and Hon is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics 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 Stoke Therapeutics 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 Stoke Therapeutics 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 Stoke Therapeutics i.e., Stoke Therapeutics and Hon Hai go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Hon Hai
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 1.73 times more return on investment than Hon Hai. However, Stoke Therapeutics is 1.73 times more volatile than Hon Hai Precision. It trades about 0.18 of its potential returns per unit of risk. Hon Hai Precision is currently generating about 0.04 per unit of risk. If you would invest 1,977 in Stoke Therapeutics on August 28, 2025 and sell it today you would earn a total of 1,144 from holding Stoke Therapeutics or generate 57.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Stoke Therapeutics vs. Hon Hai Precision
Performance |
| Timeline |
| Stoke Therapeutics |
| Hon Hai Precision |
Stoke Therapeutics and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Hon Hai
The main advantage of trading using opposite Stoke Therapeutics and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics 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.| Stoke Therapeutics vs. iA Financial | Stoke Therapeutics vs. Copperbank Resources Corp | Stoke Therapeutics vs. Chiba Bank Ltd | Stoke Therapeutics vs. CECO Environmental Corp |
| Hon Hai vs. Amphenol | Hon Hai vs. Corning Incorporated | Hon Hai vs. TE Connectivity | Hon Hai vs. Murata Manufacturing Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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