Correlation Between Hanwha Techwin and UNISEM
Can any of the company-specific risk be diversified away by investing in both Hanwha Techwin and UNISEM 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 Hanwha Techwin and UNISEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha Techwin Co and UNISEM Co, you can compare the effects of market volatilities on Hanwha Techwin and UNISEM 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 Hanwha Techwin with a short position of UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha Techwin and UNISEM.
Diversification Opportunities for Hanwha Techwin and UNISEM
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanwha and UNISEM is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha Techwin Co and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM and Hanwha Techwin 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 Hanwha Techwin Co are associated (or correlated) with UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Hanwha Techwin i.e., Hanwha Techwin and UNISEM go up and down completely randomly.
Pair Corralation between Hanwha Techwin and UNISEM
Assuming the 90 days trading horizon Hanwha Techwin Co is expected to generate 0.98 times more return on investment than UNISEM. However, Hanwha Techwin Co is 1.02 times less risky than UNISEM. It trades about 0.14 of its potential returns per unit of risk. UNISEM Co is currently generating about -0.02 per unit of risk. If you would invest 15,339,700 in Hanwha Techwin Co on August 28, 2024 and sell it today you would earn a total of 20,560,300 from holding Hanwha Techwin Co or generate 134.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.0% |
| Values | Daily Returns |
Hanwha Techwin Co vs. UNISEM Co
Performance |
| Timeline |
| Hanwha Techwin |
| UNISEM |
Hanwha Techwin and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha Techwin and UNISEM
The main advantage of trading using opposite Hanwha Techwin and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha Techwin position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Hanwha Techwin vs. Samsung Electronics Co | Hanwha Techwin vs. Samsung Electronics Co | Hanwha Techwin vs. LG Energy Solution | Hanwha Techwin vs. SK Hynix |
| UNISEM vs. Samsung Publishing Co | UNISEM vs. Hankook Furniture Co | UNISEM vs. Nice Information Telecommunication | UNISEM vs. Cuckoo Homesys Co |
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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