Correlation Between Hanmi Semiconductor and Top Material
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Top Material 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 Top Material 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 Top Material Co, you can compare the effects of market volatilities on Hanmi Semiconductor and Top Material 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 Top Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Top Material.
Diversification Opportunities for Hanmi Semiconductor and Top Material
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hanmi and Top is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Top Material Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Material 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 Top Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Material has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Top Material go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Top Material
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 1.2 times more return on investment than Top Material. However, Hanmi Semiconductor is 1.2 times more volatile than Top Material Co. It trades about 0.04 of its potential returns per unit of risk. Top Material Co is currently generating about -0.13 per unit of risk. If you would invest 8,210,000 in Hanmi Semiconductor Co on September 14, 2024 and sell it today you would earn a total of 170,000 from holding Hanmi Semiconductor Co or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Top Material Co
Performance |
| Timeline |
| Hanmi Semiconductor |
| Top Material |
Hanmi Semiconductor and Top Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Top Material
The main advantage of trading using opposite Hanmi Semiconductor and Top Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Top Material 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 Top Material will offset losses from the drop in Top Material's long position.| Hanmi Semiconductor vs. Samsung Electronics Co | Hanmi Semiconductor vs. Samsung Electronics Co | Hanmi Semiconductor vs. SK Hynix | Hanmi Semiconductor vs. POSCO Holdings |
| Top Material vs. Display Tech Co | Top Material vs. Hanmi Semiconductor Co | Top Material vs. Barunson Entertainment Arts | Top Material vs. YG Entertainment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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