Correlation Between CJ Seafood and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both CJ Seafood 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 CJ Seafood and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CJ Seafood Corp and Hanmi Semiconductor Co, you can compare the effects of market volatilities on CJ Seafood 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 CJ Seafood with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CJ Seafood and Hanmi Semiconductor.
Diversification Opportunities for CJ Seafood and Hanmi Semiconductor
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 011155 and Hanmi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CJ Seafood Corp and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and CJ Seafood 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 CJ Seafood Corp 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 CJ Seafood i.e., CJ Seafood and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between CJ Seafood and Hanmi Semiconductor
Assuming the 90 days trading horizon CJ Seafood Corp is expected to generate 0.48 times more return on investment than Hanmi Semiconductor. However, CJ Seafood Corp is 2.07 times less risky than Hanmi Semiconductor. It trades about -0.4 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about -0.36 per unit of risk. If you would invest 1,788,000 in CJ Seafood Corp on September 1, 2024 and sell it today you would lose (186,000) from holding CJ Seafood Corp or give up 10.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CJ Seafood Corp vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| CJ Seafood Corp |
| Hanmi Semiconductor |
CJ Seafood and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CJ Seafood and Hanmi Semiconductor
The main advantage of trading using opposite CJ Seafood and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CJ Seafood 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.| CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind | CJ Seafood vs. Mirae Asset Daewoo | CJ Seafood vs. Finebesteel |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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