Correlation Between Hugel and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Hugel 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 Hugel and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugel Inc and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Hugel 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 Hugel with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugel and Hanmi Semiconductor.
Diversification Opportunities for Hugel and Hanmi Semiconductor
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hugel and Hanmi is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hugel Inc and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and Hugel 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 Hugel Inc 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 Hugel i.e., Hugel and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Hugel and Hanmi Semiconductor
Assuming the 90 days trading horizon Hugel Inc is expected to generate 0.97 times more return on investment than Hanmi Semiconductor. However, Hugel Inc is 1.03 times less risky than Hanmi Semiconductor. It trades about 0.44 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about -0.25 per unit of risk. If you would invest 23,750,000 in Hugel Inc on December 1, 2024 and sell it today you would earn a total of 7,950,000 from holding Hugel Inc or generate 33.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hugel Inc vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Hugel Inc |
| Hanmi Semiconductor |
Hugel and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugel and Hanmi Semiconductor
The main advantage of trading using opposite Hugel and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugel 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.| Hugel vs. Lotte Energy Materials | Hugel vs. Ssangyong Materials Corp | Hugel vs. WONIK Materials CoLtd | Hugel vs. Daishin Information Communications |
| Hanmi Semiconductor vs. Tae Kyung Chemical | Hanmi Semiconductor vs. Lotte Non Life Insurance | Hanmi Semiconductor vs. Kyung In Synthetic Corp | Hanmi Semiconductor vs. Dongbu Insurance 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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