Correlation Between SK Hynix and Kyung-In Synthetic
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Kyung-In Synthetic 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 Kyung-In Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Kyung In Synthetic Corp, you can compare the effects of market volatilities on SK Hynix and Kyung-In Synthetic 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 Kyung-In Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Kyung-In Synthetic.
Diversification Opportunities for SK Hynix and Kyung-In Synthetic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 000660 and Kyung-In is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung-In Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of SK Hynix i.e., SK Hynix and Kyung-In Synthetic go up and down completely randomly.
Pair Corralation between SK Hynix and Kyung-In Synthetic
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the Kyung-In Synthetic. In addition to that, SK Hynix is 1.2 times more volatile than Kyung In Synthetic Corp. It trades about -0.18 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about -0.15 per unit of volatility. If you would invest 294,500 in Kyung In Synthetic Corp on September 12, 2024 and sell it today you would lose (24,000) from holding Kyung In Synthetic Corp or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| SK Hynix |
| Kyung In Synthetic |
SK Hynix and Kyung-In Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Kyung-In Synthetic
The main advantage of trading using opposite SK Hynix and Kyung-In Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Kyung-In Synthetic 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 Kyung-In Synthetic will offset losses from the drop in Kyung-In Synthetic's long position.| SK Hynix vs. Cube Entertainment | SK Hynix vs. Dreamus Company | SK Hynix vs. LG Energy Solution | SK Hynix vs. Dongwon System |
| Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. Samsung Electronics Co | Kyung-In Synthetic vs. SK Hynix | Kyung-In Synthetic vs. POSCO Holdings |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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