Correlation Between IC Technology and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both IC Technology and Hanmi Semiconductor 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 IC Technology and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IC Technology Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on IC Technology and Hanmi Semiconductor 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 IC Technology with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of IC Technology and Hanmi Semiconductor.
Diversification Opportunities for IC Technology and Hanmi Semiconductor
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 052860 and Hanmi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding IC Technology Co and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and IC Technology 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 IC Technology Co are associated (or correlated) with Hanmi Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanmi Semiconductor has no effect on the direction of IC Technology i.e., IC Technology and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between IC Technology and Hanmi Semiconductor
Assuming the 90 days trading horizon IC Technology is expected to generate 19.32 times less return on investment than Hanmi Semiconductor. But when comparing it to its historical volatility, IC Technology Co is 1.35 times less risky than Hanmi Semiconductor. It trades about 0.01 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,238,834 in Hanmi Semiconductor Co on September 12, 2024 and sell it today you would earn a total of 5,861,166 from holding Hanmi Semiconductor Co or generate 473.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IC Technology Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| IC Technology |
| Hanmi Semiconductor |
IC Technology and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IC Technology and Hanmi Semiconductor
The main advantage of trading using opposite IC Technology and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IC Technology position performs unexpectedly, Hanmi Semiconductor 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 Hanmi Semiconductor will offset losses from the drop in Hanmi Semiconductor's long position.| IC Technology vs. Netmarble Games Corp | IC Technology vs. Pungguk Ethanol Industrial | IC Technology vs. Myoung Shin Industrial | IC Technology vs. Samhwa Paint Industrial |
| Hanmi Semiconductor vs. Dongbang Transport Logistics | Hanmi Semiconductor vs. Shinhan Financial Group | Hanmi Semiconductor vs. Alton Sports CoLtd | Hanmi Semiconductor vs. Lotte Non Life Insurance |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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