Correlation Between CU Tech and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both CU Tech 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 CU Tech and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Tech Corp and Hanmi Semiconductor Co, you can compare the effects of market volatilities on CU Tech 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 CU Tech with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Tech and Hanmi Semiconductor.
Diversification Opportunities for CU Tech and Hanmi Semiconductor
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 376290 and Hanmi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CU Tech Corp and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and CU Tech 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 CU Tech Corp 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 CU Tech i.e., CU Tech and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between CU Tech and Hanmi Semiconductor
Assuming the 90 days trading horizon CU Tech Corp is expected to generate 0.45 times more return on investment than Hanmi Semiconductor. However, CU Tech Corp is 2.22 times less risky than Hanmi Semiconductor. It trades about 0.43 of its potential returns per unit of risk. Hanmi Semiconductor Co is currently generating about -0.18 per unit of risk. If you would invest 295,000 in CU Tech Corp on November 27, 2024 and sell it today you would earn a total of 35,000 from holding CU Tech Corp or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Tech Corp vs. Hanmi Semiconductor Co
Performance |
| Timeline |
| CU Tech Corp |
| Hanmi Semiconductor |
CU Tech and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Tech and Hanmi Semiconductor
The main advantage of trading using opposite CU Tech and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Tech 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.| CU Tech vs. Sangsin Energy Display | CU Tech vs. Grand Korea Leisure | CU Tech vs. PLAYWITH | CU Tech vs. Korea Computer |
| Hanmi Semiconductor vs. Songwon Industrial Co | Hanmi Semiconductor vs. Cheryong Industrial CoLtd | Hanmi Semiconductor vs. Iljin Display | Hanmi Semiconductor vs. Formetal 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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