Correlation Between Hanmi Semiconductor and Korea Steel
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Korea Steel 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 Korea Steel 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 Korea Steel Co, you can compare the effects of market volatilities on Hanmi Semiconductor and Korea Steel 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 Korea Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Korea Steel.
Diversification Opportunities for Hanmi Semiconductor and Korea Steel
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanmi and Korea is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Korea Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Steel 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 Korea Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Steel has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Korea Steel go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Korea Steel
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 3.43 times more return on investment than Korea Steel. However, Hanmi Semiconductor is 3.43 times more volatile than Korea Steel Co. It trades about 0.1 of its potential returns per unit of risk. Korea Steel Co is currently generating about -0.06 per unit of risk. If you would invest 2,140,475 in Hanmi Semiconductor Co on August 29, 2024 and sell it today you would earn a total of 5,929,525 from holding Hanmi Semiconductor Co or generate 277.02% 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. Korea Steel Co
Performance |
| Timeline |
| Hanmi Semiconductor |
| Korea Steel |
Hanmi Semiconductor and Korea Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Korea Steel
The main advantage of trading using opposite Hanmi Semiconductor and Korea Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Korea Steel 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 Korea Steel will offset losses from the drop in Korea Steel's long position.| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
| Korea Steel vs. Shinhan Financial Group | Korea Steel vs. Woori Technology | Korea Steel vs. Hana Financial | Korea Steel vs. POSCO M TECH 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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