Correlation Between Hanmi Semiconductor and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Hanmi Semiconductor and SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment Co, you can compare the effects of market volatilities on Hanmi Semiconductor and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanmi Semiconductor and SAMG Entertainment.
Diversification Opportunities for Hanmi Semiconductor and SAMG Entertainment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanmi and SAMG is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanmi Semiconductor Co and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Hanmi Semiconductor i.e., Hanmi Semiconductor and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Hanmi Semiconductor and SAMG Entertainment
Assuming the 90 days trading horizon Hanmi Semiconductor Co is expected to generate 1.12 times more return on investment than SAMG Entertainment. However, Hanmi Semiconductor is 1.12 times more volatile than SAMG Entertainment Co. It trades about 0.05 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about -0.03 per unit of risk. If you would invest 6,172,532 in Hanmi Semiconductor Co on September 14, 2024 and sell it today you would earn a total of 2,127,468 from holding Hanmi Semiconductor Co or generate 34.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Hanmi Semiconductor Co vs. SAMG Entertainment Co
Performance |
| Timeline |
| Hanmi Semiconductor |
| SAMG Entertainment |
Hanmi Semiconductor and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanmi Semiconductor and SAMG Entertainment
The main advantage of trading using opposite Hanmi Semiconductor and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanmi Semiconductor position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment'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 |
| SAMG Entertainment vs. Hanmi Semiconductor Co | SAMG Entertainment vs. Samlip General Foods | SAMG Entertainment vs. Organic Special Pet | SAMG Entertainment vs. ABOV Semiconductor 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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