Correlation Between Shin Steel and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Shin Steel 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 Shin Steel and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Steel Co and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Shin Steel 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 Shin Steel with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Steel and Hanmi Semiconductor.
Diversification Opportunities for Shin Steel and Hanmi Semiconductor
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shin and Hanmi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shin Steel 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 Shin Steel 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 Shin Steel 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 Shin Steel i.e., Shin Steel and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Shin Steel and Hanmi Semiconductor
Assuming the 90 days trading horizon Shin Steel Co is expected to under-perform the Hanmi Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shin Steel Co is 1.15 times less risky than Hanmi Semiconductor. The stock trades about -0.03 of its potential returns per unit of risk. The Hanmi Semiconductor Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,528,199 in Hanmi Semiconductor Co on October 30, 2024 and sell it today you would earn a total of 10,531,801 from holding Hanmi Semiconductor Co or generate 689.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Steel Co vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Shin Steel |
| Hanmi Semiconductor |
Shin Steel and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Steel and Hanmi Semiconductor
The main advantage of trading using opposite Shin Steel and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Steel 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.| Shin Steel vs. Samsung Electronics Co | Shin Steel vs. Samsung Electronics Co | Shin Steel vs. LG Energy Solution | Shin Steel vs. SK Hynix |
| Hanmi Semiconductor vs. Dongbang Transport Logistics | Hanmi Semiconductor vs. Samwha Electronics Co | Hanmi Semiconductor vs. Innowireless Co | Hanmi Semiconductor vs. Daewoo Electronic Components |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |