Correlation Between Hanmi Semiconductor and Husteel
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Husteel 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 Husteel 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 Husteel, you can compare the effects of market volatilities on Hanmi Semiconductor and Husteel 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 Husteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Husteel.
Diversification Opportunities for Hanmi Semiconductor and Husteel
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanmi and Husteel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Husteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husteel 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 Husteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husteel has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Husteel go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Husteel
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to under-perform the Husteel. In addition to that, Hanmi Semiconductor is 1.35 times more volatile than Husteel. It trades about -0.51 of its total potential returns per unit of risk. Husteel is currently generating about -0.05 per unit of volatility. If you would invest 408,500 in Husteel on September 4, 2024 and sell it today you would lose (10,000) from holding Husteel or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Husteel
Performance |
| Timeline |
| Hanmi Semiconductor |
| Husteel |
Hanmi Semiconductor and Husteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Husteel
The main advantage of trading using opposite Hanmi Semiconductor and Husteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Husteel 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 Husteel will offset losses from the drop in Husteel's long position.| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
| Husteel vs. DB Financial Investment | Husteel vs. Shinsegae Information Communication | Husteel vs. Golden Bridge Investment | Husteel vs. Daelim Trading 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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