Correlation Between Shinil Electronics and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Shinil Electronics 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 Shinil Electronics and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Electronics Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Shinil Electronics 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 Shinil Electronics with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Electronics and Hanmi Semiconductor.
Diversification Opportunities for Shinil Electronics and Hanmi Semiconductor
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shinil and Hanmi is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Electronics Co and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and Shinil Electronics 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 Shinil Electronics Co 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 Shinil Electronics i.e., Shinil Electronics and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Shinil Electronics and Hanmi Semiconductor
Assuming the 90 days trading horizon Shinil Electronics Co is expected to under-perform the Hanmi Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Electronics Co is 3.88 times less risky than Hanmi Semiconductor. The stock trades about -0.09 of its potential returns per unit of risk. The Hanmi Semiconductor Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,082,930 in Hanmi Semiconductor Co on August 25, 2024 and sell it today you would earn a total of 2,257,070 from holding Hanmi Semiconductor Co or generate 37.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Electronics Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Shinil Electronics |
| Hanmi Semiconductor |
Shinil Electronics and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Electronics and Hanmi Semiconductor
The main advantage of trading using opposite Shinil Electronics and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Electronics 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.| Shinil Electronics vs. Busan Industrial Co | Shinil Electronics vs. Busan Ind | Shinil Electronics vs. Mirae Asset Daewoo | Shinil Electronics vs. UNISEM Co |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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