Correlation Between Hanmi Semiconductor and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Puloon Technology 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 Puloon Technology 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 Puloon Technology, you can compare the effects of market volatilities on Hanmi Semiconductor and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Puloon Technology.
Diversification Opportunities for Hanmi Semiconductor and Puloon Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanmi and Puloon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Puloon Technology go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Puloon Technology
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 2.88 times more return on investment than Puloon Technology. However, Hanmi Semiconductor is 2.88 times more volatile than Puloon Technology. It trades about 0.16 of its potential returns per unit of risk. Puloon Technology is currently generating about 0.04 per unit of risk. If you would invest 9,950,000 in Hanmi Semiconductor Co on November 7, 2024 and sell it today you would earn a total of 1,370,000 from holding Hanmi Semiconductor Co or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Puloon Technology
Performance |
| Timeline |
| Hanmi Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Puloon Technology |
Hanmi Semiconductor and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Puloon Technology
The main advantage of trading using opposite Hanmi Semiconductor and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Hanmi Semiconductor vs. Woori Technology | Hanmi Semiconductor vs. Neungyule Education | Hanmi Semiconductor vs. KG Eco Technology | Hanmi Semiconductor vs. Mgame Corp |
| Puloon Technology vs. Ssangyong Materials Corp | Puloon Technology vs. SK IE Technology | Puloon Technology vs. Asia Technology Co | Puloon Technology vs. Woori Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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