Correlation Between Hanilcmt and UNISEM
Can any of the company-specific risk be diversified away by investing in both Hanilcmt and UNISEM 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 Hanilcmt and UNISEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanilcmt Co and UNISEM Co, you can compare the effects of market volatilities on Hanilcmt and UNISEM 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 Hanilcmt with a short position of UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanilcmt and UNISEM.
Diversification Opportunities for Hanilcmt and UNISEM
Good diversification
The 3 months correlation between Hanilcmt and UNISEM is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hanilcmt Co and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM and Hanilcmt 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 Hanilcmt Co are associated (or correlated) with UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Hanilcmt i.e., Hanilcmt and UNISEM go up and down completely randomly.
Pair Corralation between Hanilcmt and UNISEM
Assuming the 90 days trading horizon Hanilcmt Co is expected to generate 0.58 times more return on investment than UNISEM. However, Hanilcmt Co is 1.74 times less risky than UNISEM. It trades about 0.06 of its potential returns per unit of risk. UNISEM Co is currently generating about -0.14 per unit of risk. If you would invest 1,374,000 in Hanilcmt Co on September 13, 2024 and sell it today you would earn a total of 61,000 from holding Hanilcmt Co or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanilcmt Co vs. UNISEM Co
Performance |
| Timeline |
| Hanilcmt |
| UNISEM |
Hanilcmt and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanilcmt and UNISEM
The main advantage of trading using opposite Hanilcmt and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanilcmt position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Hanilcmt vs. Posco Chemical Co | Hanilcmt vs. Naver | Hanilcmt vs. Busan Industrial Co | Hanilcmt vs. Busan Ind |
| UNISEM vs. Jb Financial | UNISEM vs. BGF Retail Co | UNISEM vs. DB Insurance Co | UNISEM vs. Shinhan Financial Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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