Correlation Between SK Hynix and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Mirae Asset 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 Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Mirae Asset Daewoo, you can compare the effects of market volatilities on SK Hynix and Mirae Asset 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 Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Mirae Asset.
Diversification Opportunities for SK Hynix and Mirae Asset
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 000660 and Mirae is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo 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 Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset Daewoo has no effect on the direction of SK Hynix i.e., SK Hynix and Mirae Asset go up and down completely randomly.
Pair Corralation between SK Hynix and Mirae Asset
Assuming the 90 days trading horizon SK Hynix is expected to generate 9.02 times more return on investment than Mirae Asset. However, SK Hynix is 9.02 times more volatile than Mirae Asset Daewoo. It trades about 0.37 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.37 per unit of risk. If you would invest 17,390,000 in SK Hynix on October 29, 2024 and sell it today you would earn a total of 4,710,000 from holding SK Hynix or generate 27.08% 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. Mirae Asset Daewoo
Performance |
| Timeline |
| SK Hynix |
| Mirae Asset Daewoo |
SK Hynix and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Mirae Asset
The main advantage of trading using opposite SK Hynix and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| SK Hynix vs. Union Materials Corp | SK Hynix vs. PI Advanced Materials | SK Hynix vs. WONIK Materials CoLtd | SK Hynix vs. INNOX Advanced Materials |
| Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |