Correlation Between Hanjin Transportation and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Mirai Semiconductors 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 Hanjin Transportation and Mirai Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and Mirai Semiconductors Co, you can compare the effects of market volatilities on Hanjin Transportation and Mirai Semiconductors 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 Hanjin Transportation with a short position of Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Mirai Semiconductors.
Diversification Opportunities for Hanjin Transportation and Mirai Semiconductors
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanjin and Mirai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Mirai Semiconductors
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.39 times more return on investment than Mirai Semiconductors. However, Hanjin Transportation Co is 2.59 times less risky than Mirai Semiconductors. It trades about 0.05 of its potential returns per unit of risk. Mirai Semiconductors Co is currently generating about -0.15 per unit of risk. If you would invest 1,836,519 in Hanjin Transportation Co on October 4, 2024 and sell it today you would earn a total of 64,481 from holding Hanjin Transportation Co or generate 3.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hanjin Transportation Co vs. Mirai Semiconductors Co
Performance |
Timeline |
Hanjin Transportation |
Mirai Semiconductors |
Hanjin Transportation and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanjin Transportation and Mirai Semiconductors
The main advantage of trading using opposite Hanjin Transportation and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.Hanjin Transportation vs. AptaBio Therapeutics | Hanjin Transportation vs. Daewoo SBI SPAC | Hanjin Transportation vs. Dream Security co | Hanjin Transportation vs. Microfriend |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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