Correlation Between Samyoung Electronics and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Samyoung 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 Samyoung 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 Samyoung Electronics Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Samyoung 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 Samyoung Electronics with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samyoung Electronics and Hanmi Semiconductor.
Diversification Opportunities for Samyoung Electronics and Hanmi Semiconductor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samyoung and Hanmi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samyoung 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 Samyoung 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 Samyoung 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 Samyoung Electronics i.e., Samyoung Electronics and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Samyoung Electronics and Hanmi Semiconductor
Assuming the 90 days trading horizon Samyoung Electronics Co is expected to generate 0.23 times more return on investment than Hanmi Semiconductor. However, Samyoung Electronics Co is 4.29 times less risky than Hanmi Semiconductor. It trades about 0.3 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about -0.06 per unit of risk. If you would invest 987,000 in Samyoung Electronics Co on November 9, 2024 and sell it today you would earn a total of 55,000 from holding Samyoung Electronics Co or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samyoung Electronics Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Samyoung Electronics |
| Hanmi Semiconductor |
Samyoung Electronics and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samyoung Electronics and Hanmi Semiconductor
The main advantage of trading using opposite Samyoung Electronics and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samyoung 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.| Samyoung Electronics vs. YeaRimDang Publishing Co | Samyoung Electronics vs. Digital Multimedia Technology | Samyoung Electronics vs. Alton Sports CoLtd | Samyoung Electronics vs. Clean Science 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |