Correlation Between Hon Hai and CYIOS

Can any of the company-specific risk be diversified away by investing in both Hon Hai and CYIOS 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 Hon Hai and CYIOS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hon Hai Precision and CYIOS, you can compare the effects of market volatilities on Hon Hai and CYIOS 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 Hon Hai with a short position of CYIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hon Hai and CYIOS.

Diversification Opportunities for Hon Hai and CYIOS

-0.22

Correlation Coefficient

Hon Hai  CYIOS

Very good diversification

The 3 months correlation between Hon and CYIOS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hon Hai Precision and CYIOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CYIOS and Hon Hai 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 Hon Hai Precision are associated (or correlated) with CYIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CYIOS has no effect on the direction of Hon Hai i.e., Hon Hai and CYIOS go up and down completely randomly.

Pair Corralation between Hon Hai and CYIOS

Assuming the 90 days horizon Hon Hai is expected to generate 1.02 times less return on investment than CYIOS. But when comparing it to its historical volatility, Hon Hai Precision is 3.4 times less risky than CYIOS. It trades about 0.04 of its potential returns per unit of risk. CYIOS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.39  in CYIOS on September 12, 2025 and sell it today you would lose (0.06) from holding CYIOS or give up 15.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hon Hai Precision  vs.  CYIOS

Hon Hai Precision

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Hon Hai Precision are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hon Hai may actually be approaching a critical reversion point that can send shares even higher in January 2026.

CYIOS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CYIOS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, CYIOS may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Hon Hai and CYIOS

The main advantage of trading using opposite Hon Hai and CYIOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hon Hai position performs unexpectedly, CYIOS 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 CYIOS will offset losses from the drop in CYIOS's long position.

The idea behind Hon Hai Precision and CYIOS 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.