Correlation Between Duksan Hi and Hanmi Semiconductor
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and Hanmi Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Hanmi Semiconductor Co, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of Hanmi Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Hanmi Semiconductor.
Diversification Opportunities for Duksan Hi and Hanmi Semiconductor
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duksan and Hanmi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Hanmi Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanmi Semiconductor and Duksan Hi 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 Duksan Hi Metal 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 Duksan Hi i.e., Duksan Hi and Hanmi Semiconductor go up and down completely randomly.
Pair Corralation between Duksan Hi and Hanmi Semiconductor
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Hanmi Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Duksan Hi Metal is 1.26 times less risky than Hanmi Semiconductor. The stock trades about -0.16 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 11,420,000 in Hanmi Semiconductor Co on September 26, 2024 and sell it today you would lose (2,950,000) from holding Hanmi Semiconductor Co or give up 25.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Duksan Hi Metal vs. Hanmi Semiconductor Co
Performance |
Timeline |
Duksan Hi Metal |
Hanmi Semiconductor |
Duksan Hi and Hanmi Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Duksan Hi and Hanmi Semiconductor
The main advantage of trading using opposite Duksan Hi and Hanmi Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
Hanmi Semiconductor vs. Nable Communications | Hanmi Semiconductor vs. Inzi Display CoLtd | Hanmi Semiconductor vs. CJ Seafood Corp | Hanmi Semiconductor vs. Duksan Hi Metal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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