Correlation Between Jeju Semiconductor and Hancom
Can any of the company-specific risk be diversified away by investing in both Jeju Semiconductor and Hancom 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 Jeju Semiconductor and Hancom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Semiconductor Corp and Hancom Inc, you can compare the effects of market volatilities on Jeju Semiconductor and Hancom 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 Jeju Semiconductor with a short position of Hancom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Semiconductor and Hancom.
Diversification Opportunities for Jeju Semiconductor and Hancom
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeju and Hancom is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Semiconductor Corp and Hancom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancom Inc and Jeju 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 Jeju Semiconductor Corp are associated (or correlated) with Hancom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancom Inc has no effect on the direction of Jeju Semiconductor i.e., Jeju Semiconductor and Hancom go up and down completely randomly.
Pair Corralation between Jeju Semiconductor and Hancom
Assuming the 90 days trading horizon Jeju Semiconductor Corp is expected to under-perform the Hancom. But the stock apears to be less risky and, when comparing its historical volatility, Jeju Semiconductor Corp is 2.24 times less risky than Hancom. The stock trades about -0.55 of its potential returns per unit of risk. The Hancom Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,911,000 in Hancom Inc on September 11, 2024 and sell it today you would earn a total of 184,000 from holding Hancom Inc or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Semiconductor Corp vs. Hancom Inc
Performance |
| Timeline |
| Jeju Semiconductor Corp |
| Hancom Inc |
Jeju Semiconductor and Hancom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Semiconductor and Hancom
The main advantage of trading using opposite Jeju Semiconductor and Hancom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Semiconductor position performs unexpectedly, Hancom 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 Hancom will offset losses from the drop in Hancom's long position.| Jeju Semiconductor vs. MS Autotech CoLtd | Jeju Semiconductor vs. Mobase Electronics CoLtd | Jeju Semiconductor vs. The LEADCORP | Jeju Semiconductor vs. FarmStory Co |
| Hancom vs. MS Autotech CoLtd | Hancom vs. Mobase Electronics CoLtd | Hancom vs. The LEADCORP | Hancom vs. FarmStory 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |