Correlation Between Hanmi Semiconductor and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Mirai Semiconductors 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 Mirai Semiconductors 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 Mirai Semiconductors Co, you can compare the effects of market volatilities on Hanmi Semiconductor and Mirai Semiconductors 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 Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Mirai Semiconductors.
Diversification Opportunities for Hanmi Semiconductor and Mirai Semiconductors
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanmi and Mirai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors 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 Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Mirai Semiconductors
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 1.65 times more return on investment than Mirai Semiconductors. However, Hanmi Semiconductor is 1.65 times more volatile than Mirai Semiconductors Co. It trades about 0.37 of its potential returns per unit of risk. Mirai Semiconductors Co is currently generating about 0.17 per unit of risk. If you would invest 8,090,000 in Hanmi Semiconductor Co on October 12, 2024 and sell it today you would earn a total of 3,200,000 from holding Hanmi Semiconductor Co or generate 39.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Mirai Semiconductors Co
Performance |
| Timeline |
| Hanmi Semiconductor |
| Mirai Semiconductors |
Hanmi Semiconductor and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Mirai Semiconductors
The main advantage of trading using opposite Hanmi Semiconductor and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.| Hanmi Semiconductor vs. DRB Industrial Co | Hanmi Semiconductor vs. Namhwa Industrial Co | Hanmi Semiconductor vs. Eagon Industrial Co | Hanmi Semiconductor vs. Dongil Metal Co |
| Mirai Semiconductors vs. Kg Chemical | Mirai Semiconductors vs. Hannong Chemicals | Mirai Semiconductors vs. SK Chemicals Co | Mirai Semiconductors vs. Kisan Telecom 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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