Hon Hai Correlations

HHPD Stock

13.48 0.48 3.69%

The current 90-days correlation between Hon Hai Precision and Charter Communications Cl is 0.04 (i.e., Significant diversification). The correlation of Hon Hai is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Hon Hai Correlation With Market

Average diversification

The correlation between Hon Hai Precision and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hon Hai Precision and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Hon Hai could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hon Hai when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hon Hai - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hon Hai Precision to buy it.

Moving against Hon Stock

0.82	RIGD	Reliance Industries	Pair Corr
0.72	SMSD	Samsung Electronics	Pair Corr
0.72	SMSN	Samsung Electronics	Pair Corr
0.46	GTCO	Guaranty Trust Holding	Pair Corr
0.4	HYUD	Hyundai Motor	Pair Corr

Related Correlations Analysis

	0K2K	0A1O	PCT	0K34	MONY	0NYH	BYIT	0HW4
0K2K		0.63	0.1	0.79	-0.58	0.64	0.11	-0.25	0K2K
0A1O	0.63		0.37	0.73	-0.69	0.88	-0.11	0.05	0A1O
PCT	0.1	0.37		0.4	-0.3	0.46	0.13	0.25	PCT
0K34	0.79	0.73	0.4		-0.75	0.79	0.09	-0.16	0K34
MONY	-0.58	-0.69	-0.3	-0.75		-0.77	0.44	-0.14	MONY
0NYH	0.64	0.88	0.46	0.79	-0.77		-0.15	-0.03	0NYH
BYIT	0.11	-0.11	0.13	0.09	0.44	-0.15		-0.48	BYIT
0HW4	-0.25	0.05	0.25	-0.16	-0.14	-0.03	-0.48		0HW4
	0K2K	0A1O	PCT	0K34	MONY	0NYH	BYIT	0HW4

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

0NYH	+ 0.88	0A1O
0K34	+ 0.79	0K2K
0NYH	+ 0.79	0K34
0K34	+ 0.73	0A1O
0NYH	+ 0.64	0K2K
0A1O	+ 0.63	0K2K

High negative correlations

0NYH	- 0.77	MONY
MONY	- 0.75	0K34
MONY	- 0.69	0A1O
MONY	- 0.58	0K2K
0HW4	- 0.48	BYIT
MONY	- 0.3	PCT

Risk-Adjusted Indicators

There is a big difference between Hon Stock performing well and Hon Hai Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Hon Hai's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
0K2K	1.02	0.06	(0.06)	0.41	1.09	(1.13)	2.45	(1.78)	9.53
0A1O	1.32	0.46	0.24	1.25	1.03	(1.58)	2.67	(2.29)	16.95
PCT	1.05	0.02	0.00	0.19	1.09	(1.14)	2.68	(2.16)	5.89
0K34	1.01	0.28	0.11	2.16	0.74	(1.14)	2.56	(1.43)	7.41
MONY	1.17	(0.29)	0.00	(0.40)	0.00	0.00	1.79	(1.78)	10.69
0NYH	0.40	0.09	(0.21)	(0.70)	0.33	(0.49)	1.05	(0.82)	3.33
BYIT	1.47	(0.18)	0.00	(0.10)	0.00	0.00	3.59	(3.93)	13.21
0HW4	1.67	(0.02)	(0.02)	0.16	1.83	(1.77)	3.38	(3.43)	10.97

Be your own money manager

Our tools can tell you how much better you can do entering a position in Hon Hai without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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