Correlation Between UNISEM and Hanwha Galleria
Can any of the company-specific risk be diversified away by investing in both UNISEM and Hanwha Galleria 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 UNISEM and Hanwha Galleria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and Hanwha Galleria Corp, you can compare the effects of market volatilities on UNISEM and Hanwha Galleria 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 UNISEM with a short position of Hanwha Galleria. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Hanwha Galleria.
Diversification Opportunities for UNISEM and Hanwha Galleria
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNISEM and Hanwha is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and Hanwha Galleria Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Galleria Corp and UNISEM 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 UNISEM Co are associated (or correlated) with Hanwha Galleria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Galleria Corp has no effect on the direction of UNISEM i.e., UNISEM and Hanwha Galleria go up and down completely randomly.
Pair Corralation between UNISEM and Hanwha Galleria
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the Hanwha Galleria. In addition to that, UNISEM is 5.03 times more volatile than Hanwha Galleria Corp. It trades about -0.04 of its total potential returns per unit of risk. Hanwha Galleria Corp is currently generating about 0.12 per unit of volatility. If you would invest 1,118,557 in Hanwha Galleria Corp on September 12, 2024 and sell it today you would earn a total of 52,443 from holding Hanwha Galleria Corp or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. Hanwha Galleria Corp
Performance |
| Timeline |
| UNISEM |
| Hanwha Galleria Corp |
UNISEM and Hanwha Galleria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and Hanwha Galleria
The main advantage of trading using opposite UNISEM and Hanwha Galleria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, Hanwha Galleria 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 Hanwha Galleria will offset losses from the drop in Hanwha Galleria's long position.| UNISEM vs. Jb Financial | UNISEM vs. BGF Retail Co | UNISEM vs. DB Insurance Co | UNISEM vs. Shinhan Financial Group |
| Hanwha Galleria vs. Hanwha ARIRANG KTB | Hanwha Galleria vs. Hanwha ARIRANG KOSPI50 | Hanwha Galleria vs. Hanwha ARIRANG SP |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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