Correlation Between Samwha Electronics and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Samwha 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 Samwha 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 Samwha Electronics Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Samwha 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 Samwha Electronics with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and Hanmi Semiconductor.
Diversification Opportunities for Samwha Electronics and Hanmi Semiconductor
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samwha and Hanmi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samwha 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 Samwha 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 Samwha 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 Samwha Electronics i.e., Samwha Electronics and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Samwha Electronics and Hanmi Semiconductor
Assuming the 90 days trading horizon Samwha Electronics Co is expected to under-perform the Hanmi Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Samwha Electronics Co is 2.45 times less risky than Hanmi Semiconductor. The stock trades about -0.22 of its potential returns per unit of risk. The Hanmi Semiconductor Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9,950,000 in Hanmi Semiconductor Co on November 7, 2024 and sell it today you would earn a total of 1,370,000 from holding Hanmi Semiconductor Co or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samwha Electronics Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Samwha Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Hanmi Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Samwha Electronics and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and Hanmi Semiconductor
The main advantage of trading using opposite Samwha Electronics and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha 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.| Samwha Electronics vs. Mgame Corp | Samwha Electronics vs. ITM Semiconductor Co | Samwha Electronics vs. Hyundai Home Shopping | Samwha Electronics vs. Posco Chemical Co |
| Hanmi Semiconductor vs. Woori Technology | Hanmi Semiconductor vs. Neungyule Education | Hanmi Semiconductor vs. KG Eco Technology | Hanmi Semiconductor vs. Mgame Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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