Correlation Between SK Hynix and NH Investment
Can any of the company-specific risk be diversified away by investing in both SK Hynix and NH Investment 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 SK Hynix and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and NH Investment Securities, you can compare the effects of market volatilities on SK Hynix and NH Investment 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 SK Hynix with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and NH Investment.
Diversification Opportunities for SK Hynix and NH Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 000660 and 005940 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and SK Hynix 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 SK Hynix are associated (or correlated) with NH Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Investment Securities has no effect on the direction of SK Hynix i.e., SK Hynix and NH Investment go up and down completely randomly.
Pair Corralation between SK Hynix and NH Investment
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the NH Investment. In addition to that, SK Hynix is 2.2 times more volatile than NH Investment Securities. It trades about -0.01 of its total potential returns per unit of risk. NH Investment Securities is currently generating about 0.04 per unit of volatility. If you would invest 1,244,000 in NH Investment Securities on September 3, 2024 and sell it today you would earn a total of 88,000 from holding NH Investment Securities or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. NH Investment Securities
Performance |
| Timeline |
| SK Hynix |
| NH Investment Securities |
SK Hynix and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and NH Investment
The main advantage of trading using opposite SK Hynix and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, NH Investment 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 NH Investment will offset losses from the drop in NH Investment's long position.| SK Hynix vs. Haitai Confectionery Foods | SK Hynix vs. Dongkuk Structures Construction | SK Hynix vs. Tuksu Engineering ConstructionLtd | SK Hynix vs. Camus Engineering Construction |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment 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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |