Correlation Between Jahwa Electronics and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jahwa 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 Jahwa 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 Jahwa Electronics Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Jahwa 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 Jahwa Electronics with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electronics and Hanmi Semiconductor.
Diversification Opportunities for Jahwa Electronics and Hanmi Semiconductor
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jahwa and Hanmi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa 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 Jahwa 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 Jahwa 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 Jahwa Electronics i.e., Jahwa Electronics and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Jahwa Electronics and Hanmi Semiconductor
Assuming the 90 days trading horizon Jahwa Electronics Co is expected to generate 1.18 times more return on investment than Hanmi Semiconductor. However, Jahwa Electronics is 1.18 times more volatile than Hanmi Semiconductor Co. It trades about 0.37 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 1,246,000 in Jahwa Electronics Co on November 9, 2024 and sell it today you would earn a total of 467,000 from holding Jahwa Electronics Co or generate 37.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jahwa Electronics Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Jahwa Electronics |
| Hanmi Semiconductor |
Jahwa Electronics and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jahwa Electronics and Hanmi Semiconductor
The main advantage of trading using opposite Jahwa Electronics and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa 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.| Jahwa Electronics vs. INFINITT Healthcare Co | Jahwa Electronics vs. CKH Food Health | Jahwa Electronics vs. Sangsin Energy Display | Jahwa Electronics vs. Lotte Data Communication |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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