Correlation Between Hanmi Semiconductor and Digital Power
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Digital Power 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 Digital Power 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 Digital Power Communications, you can compare the effects of market volatilities on Hanmi Semiconductor and Digital Power 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 Digital Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Digital Power.
Diversification Opportunities for Hanmi Semiconductor and Digital Power
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanmi and Digital is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Digital Power Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Power Commun 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 Digital Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Power Commun has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Digital Power go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Digital Power
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 4.74 times more return on investment than Digital Power. However, Hanmi Semiconductor is 4.74 times more volatile than Digital Power Communications. It trades about 0.37 of its potential returns per unit of risk. Digital Power Communications is currently generating about -0.3 per unit of risk. If you would invest 8,710,000 in Hanmi Semiconductor Co on November 2, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Digital Power Communications
Performance |
| Timeline |
| Hanmi Semiconductor |
| Digital Power Commun |
Hanmi Semiconductor and Digital Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Digital Power
The main advantage of trading using opposite Hanmi Semiconductor and Digital Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Digital Power 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 Digital Power will offset losses from the drop in Digital Power's long position.| Hanmi Semiconductor vs. Nh Investment And | Hanmi Semiconductor vs. Infinitt Healthcare Co | Hanmi Semiconductor vs. Sangsangin Investment Securities | Hanmi Semiconductor vs. INFINITT Healthcare Co |
| Digital Power vs. Inzi Display CoLtd | Digital Power vs. Tuksu Engineering ConstructionLtd | Digital Power vs. Korea Computer | Digital Power vs. LG Display 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |