Correlation Between Incar Financial and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Incar Financial 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 Incar Financial and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Incar Financial 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 Incar Financial with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Hanmi Semiconductor.
Diversification Opportunities for Incar Financial and Hanmi Semiconductor
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Incar and Hanmi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and Incar Financial 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 Incar Financial Service 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 Incar Financial i.e., Incar Financial and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Incar Financial and Hanmi Semiconductor
Assuming the 90 days trading horizon Incar Financial is expected to generate 7.35 times less return on investment than Hanmi Semiconductor. In addition to that, Incar Financial is 1.4 times more volatile than Hanmi Semiconductor Co. It trades about 0.0 of its total potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about 0.04 per unit of volatility. If you would invest 5,863,905 in Hanmi Semiconductor Co on September 4, 2024 and sell it today you would earn a total of 1,366,095 from holding Hanmi Semiconductor Co or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.82% |
| Values | Daily Returns |
Incar Financial Service vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| Incar Financial Service |
| Hanmi Semiconductor |
Incar Financial and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Hanmi Semiconductor
The main advantage of trading using opposite Incar Financial and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial 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.| Incar Financial vs. Busan Industrial Co | Incar Financial vs. UNISEM Co | Incar Financial vs. RPBio Inc | Incar Financial vs. Finebesteel |
| Hanmi Semiconductor vs. AptaBio Therapeutics | Hanmi Semiconductor vs. Daewoo SBI SPAC | Hanmi Semiconductor vs. Dream Security co | Hanmi Semiconductor vs. Microfriend |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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