Correlation Between SK Hynix and Samyoung M
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Samyoung M 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 Samyoung M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Samyoung M Tek Co, you can compare the effects of market volatilities on SK Hynix and Samyoung M 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 Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Samyoung M.
Diversification Opportunities for SK Hynix and Samyoung M
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 000660 and Samyoung is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek 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 Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of SK Hynix i.e., SK Hynix and Samyoung M go up and down completely randomly.
Pair Corralation between SK Hynix and Samyoung M
Assuming the 90 days trading horizon SK Hynix is expected to generate 1.31 times more return on investment than Samyoung M. However, SK Hynix is 1.31 times more volatile than Samyoung M Tek Co. It trades about 0.05 of its potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.05 per unit of risk. If you would invest 16,106,000 in SK Hynix on October 22, 2024 and sell it today you would earn a total of 5,094,000 from holding SK Hynix or generate 31.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.79% |
| Values | Daily Returns |
SK Hynix vs. Samyoung M Tek Co
Performance |
| Timeline |
| SK Hynix |
| Samyoung M Tek |
SK Hynix and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Samyoung M
The main advantage of trading using opposite SK Hynix and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| SK Hynix vs. Sangsangin Investment Securities | SK Hynix vs. Atinum Investment Co | SK Hynix vs. SV Investment | SK Hynix vs. Incar Financial Service |
| Samyoung M vs. CU Medical Systems | Samyoung M vs. Daejung Chemicals Metals | Samyoung M vs. Sung Bo Chemicals | Samyoung M vs. DONGKUK TED 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets |