Correlation Between Hanmi Semiconductor and Heungkuk Metaltech
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Heungkuk Metaltech 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 Hanmi Semiconductor and Heungkuk Metaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanmi Semiconductor Co and Heungkuk Metaltech CoLtd, you can compare the effects of market volatilities on Hanmi Semiconductor and Heungkuk Metaltech 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 Hanmi Semiconductor with a short position of Heungkuk Metaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Heungkuk Metaltech.
Diversification Opportunities for Hanmi Semiconductor and Heungkuk Metaltech
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanmi and Heungkuk is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Heungkuk Metaltech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heungkuk Metaltech CoLtd and Hanmi Semiconductor 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 Hanmi Semiconductor Co are associated (or correlated) with Heungkuk Metaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heungkuk Metaltech CoLtd has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Heungkuk Metaltech go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Heungkuk Metaltech
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to under-perform the Heungkuk Metaltech. In addition to that, Hanmi Semiconductor is 1.7 times more volatile than Heungkuk Metaltech CoLtd. It trades about -0.1 of its total potential returns per unit of risk. Heungkuk Metaltech CoLtd is currently generating about 0.1 per unit of volatility. If you would invest 489,500 in Heungkuk Metaltech CoLtd on September 28, 2024 and sell it today you would earn a total of 60,500 from holding Heungkuk Metaltech CoLtd or generate 12.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hanmi Semiconductor Co vs. Heungkuk Metaltech CoLtd
Performance |
Timeline |
Hanmi Semiconductor |
Heungkuk Metaltech CoLtd |
Hanmi Semiconductor and Heungkuk Metaltech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanmi Semiconductor and Heungkuk Metaltech
The main advantage of trading using opposite Hanmi Semiconductor and Heungkuk Metaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Heungkuk Metaltech 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 Heungkuk Metaltech will offset losses from the drop in Heungkuk Metaltech's long position.Hanmi Semiconductor vs. AptaBio Therapeutics | ||
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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