Correlation Between Hanmi Semiconductor and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Sam Yang 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 Hanmi Semiconductor and Sam Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanmi Semiconductor Co and Sam Yang Foods, you can compare the effects of market volatilities on Hanmi Semiconductor and Sam Yang 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 Hanmi Semiconductor with a short position of Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Sam Yang.
Diversification Opportunities for Hanmi Semiconductor and Sam Yang
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanmi and Sam is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Sam Yang Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Yang Foods and Hanmi Semiconductor 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 Hanmi Semiconductor Co are associated (or correlated) with Sam Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Yang Foods has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Sam Yang go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Sam Yang
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 2.8 times more return on investment than Sam Yang. However, Hanmi Semiconductor is 2.8 times more volatile than Sam Yang Foods. It trades about 0.37 of its potential returns per unit of risk. Sam Yang Foods is currently generating about -0.11 per unit of risk. If you would invest 8,710,000 in Hanmi Semiconductor Co on November 1, 2024 and sell it today you would earn a total of 3,350,000 from holding Hanmi Semiconductor Co or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Sam Yang Foods
Performance |
| Timeline |
| Hanmi Semiconductor |
| Sam Yang Foods |
Hanmi Semiconductor and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Sam Yang
The main advantage of trading using opposite Hanmi Semiconductor and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Sam Yang 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 Sam Yang will offset losses from the drop in Sam Yang's long position.| Hanmi Semiconductor vs. Samyoung Electronics Co | Hanmi Semiconductor vs. LG Electronics | Hanmi Semiconductor vs. Jahwa Electronics Co | Hanmi Semiconductor vs. Samsung Electronics Co |
| Sam Yang vs. Shinhan Inverse Silver | Sam Yang vs. Hanmi Semiconductor Co | Sam Yang vs. Netmarble Games Corp | Sam Yang vs. Kakao Games 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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