Correlation Between Hanmi Semiconductor and Netmarble Games
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Netmarble Games 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 Netmarble Games 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 Netmarble Games Corp, you can compare the effects of market volatilities on Hanmi Semiconductor and Netmarble Games 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 Netmarble Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Netmarble Games.
Diversification Opportunities for Hanmi Semiconductor and Netmarble Games
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanmi and Netmarble is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Netmarble Games Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netmarble Games Corp 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 Netmarble Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netmarble Games Corp has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Netmarble Games go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Netmarble Games
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to under-perform the Netmarble Games. In addition to that, Hanmi Semiconductor is 1.35 times more volatile than Netmarble Games Corp. It trades about -0.17 of its total potential returns per unit of risk. Netmarble Games Corp is currently generating about -0.07 per unit of volatility. If you would invest 6,090,000 in Netmarble Games Corp on August 28, 2024 and sell it today you would lose (750,000) from holding Netmarble Games Corp or give up 12.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Netmarble Games Corp
Performance |
| Timeline |
| Hanmi Semiconductor |
| Netmarble Games Corp |
Hanmi Semiconductor and Netmarble Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Netmarble Games
The main advantage of trading using opposite Hanmi Semiconductor and Netmarble Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Netmarble Games 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 Netmarble Games will offset losses from the drop in Netmarble Games' long position.| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
| Netmarble Games vs. AfreecaTV Co | Netmarble Games vs. SS TECH | Netmarble Games vs. Busan Industrial Co | Netmarble Games vs. Busan Ind |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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