Correlation Between Hanmi Semiconductor and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Intellian Technologies 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 Intellian Technologies 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 Intellian Technologies, you can compare the effects of market volatilities on Hanmi Semiconductor and Intellian Technologies 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 Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Intellian Technologies.
Diversification Opportunities for Hanmi Semiconductor and Intellian Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanmi and Intellian is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies 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 Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Intellian Technologies go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Intellian Technologies
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to under-perform the Intellian Technologies. In addition to that, Hanmi Semiconductor is 1.11 times more volatile than Intellian Technologies. It trades about -0.18 of its total potential returns per unit of risk. Intellian Technologies is currently generating about -0.13 per unit of volatility. If you would invest 3,975,000 in Intellian Technologies on November 27, 2024 and sell it today you would lose (295,000) from holding Intellian Technologies or give up 7.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Intellian Technologies
Performance |
| Timeline |
| Hanmi Semiconductor |
| Intellian Technologies |
Hanmi Semiconductor and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Intellian Technologies
The main advantage of trading using opposite Hanmi Semiconductor and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| Hanmi Semiconductor vs. Songwon Industrial Co | Hanmi Semiconductor vs. Cheryong Industrial CoLtd | Hanmi Semiconductor vs. Iljin Display | Hanmi Semiconductor vs. Formetal Co |
| Intellian Technologies vs. SK Chemicals Co | Intellian Technologies vs. DONGKUK TED METAL | Intellian Technologies vs. Shinhan Inverse Copper | Intellian Technologies vs. SK Chemicals 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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