Correlation Between Samhwa Paint and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Samhwa Paint and Hanmi Semiconductor 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 Samhwa Paint and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhwa Paint Industrial and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Samhwa Paint and Hanmi Semiconductor 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 Samhwa Paint with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhwa Paint and Hanmi Semiconductor.
Diversification Opportunities for Samhwa Paint and Hanmi Semiconductor
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samhwa and Hanmi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samhwa Paint Industrial and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and Samhwa Paint 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 Samhwa Paint Industrial are associated (or correlated) with Hanmi Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanmi Semiconductor has no effect on the direction of Samhwa Paint i.e., Samhwa Paint and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Samhwa Paint and Hanmi Semiconductor
Assuming the 90 days trading horizon Samhwa Paint is expected to generate 7.72 times less return on investment than Hanmi Semiconductor. But when comparing it to its historical volatility, Samhwa Paint Industrial is 1.51 times less risky than Hanmi Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,243,731 in Hanmi Semiconductor Co on August 27, 2024 and sell it today you would earn a total of 7,096,269 from holding Hanmi Semiconductor Co or generate 570.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhwa Paint Industrial vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Samhwa Paint Industrial |
| Hanmi Semiconductor |
Samhwa Paint and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhwa Paint and Hanmi Semiconductor
The main advantage of trading using opposite Samhwa Paint and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhwa Paint position performs unexpectedly, Hanmi Semiconductor 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 Hanmi Semiconductor will offset losses from the drop in Hanmi Semiconductor's long position.| Samhwa Paint vs. Konan Technology | Samhwa Paint vs. POSCO M TECH Co | Samhwa Paint vs. Haitai Confectionery Foods | Samhwa Paint vs. CU Tech Corp |
| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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