Correlation Between Hanmi Semiconductor and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Ssangyong Information 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 Ssangyong Information 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 Ssangyong Information Communication, you can compare the effects of market volatilities on Hanmi Semiconductor and Ssangyong Information 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 Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Ssangyong Information.
Diversification Opportunities for Hanmi Semiconductor and Ssangyong Information
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanmi and Ssangyong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information 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 Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Ssangyong Information go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Ssangyong Information
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 2.68 times more return on investment than Ssangyong Information. However, Hanmi Semiconductor is 2.68 times more volatile than Ssangyong Information Communication. It trades about 0.0 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.02 per unit of risk. If you would invest 13,740,000 in Hanmi Semiconductor Co on October 26, 2024 and sell it today you would lose (1,550,000) from holding Hanmi Semiconductor Co or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Ssangyong Information Communic
Performance |
| Timeline |
| Hanmi Semiconductor |
| Ssangyong Information |
Hanmi Semiconductor and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Ssangyong Information
The main advantage of trading using opposite Hanmi Semiconductor and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Hanmi Semiconductor vs. Dongil Metal Co | Hanmi Semiconductor vs. Youngsin Metal Industrial | Hanmi Semiconductor vs. Hanjoo Light Metal | Hanmi Semiconductor vs. Daejung Chemicals Metals |
| Ssangyong Information vs. Inzi Display CoLtd | Ssangyong Information vs. PlayD Co | Ssangyong Information vs. Aprogen Healthcare Games | Ssangyong Information vs. Hanmi Semiconductor 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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