Correlation Between Hanmi Semiconductor and Konan Technology
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and Konan 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 Konan 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 Konan Technology, you can compare the effects of market volatilities on Hanmi Semiconductor and Konan 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 Konan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and Konan Technology.
Diversification Opportunities for Hanmi Semiconductor and Konan Technology
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanmi and Konan is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and Konan Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konan 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 Konan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konan Technology has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and Konan Technology go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and Konan Technology
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 1.15 times more return on investment than Konan Technology. However, Hanmi Semiconductor is 1.15 times more volatile than Konan Technology. It trades about 0.04 of its potential returns per unit of risk. Konan Technology is currently generating about -0.01 per unit of risk. If you would invest 5,824,082 in Hanmi Semiconductor Co on September 1, 2024 and sell it today you would earn a total of 1,635,918 from holding Hanmi Semiconductor Co or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. Konan Technology
Performance |
| Timeline |
| Hanmi Semiconductor |
| Konan Technology |
Hanmi Semiconductor and Konan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and Konan Technology
The main advantage of trading using opposite Hanmi Semiconductor and Konan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, Konan 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 Konan Technology will offset losses from the drop in Konan Technology's long position.| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
| Konan Technology vs. Devsisters corporation | Konan Technology vs. Nice Information Telecommunication | Konan Technology vs. InfoBank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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