Correlation Between SK Hynix and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both SK Hynix and EBEST 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 EBEST 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 EBEST Investment Securities, you can compare the effects of market volatilities on SK Hynix and EBEST 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 EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and EBEST Investment.
Diversification Opportunities for SK Hynix and EBEST Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 000660 and EBEST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of SK Hynix i.e., SK Hynix and EBEST Investment go up and down completely randomly.
Pair Corralation between SK Hynix and EBEST Investment
Assuming the 90 days trading horizon SK Hynix is expected to generate 1.6 times more return on investment than EBEST Investment. However, SK Hynix is 1.6 times more volatile than EBEST Investment Securities. It trades about 0.06 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about 0.0 per unit of risk. If you would invest 13,736,900 in SK Hynix on November 3, 2024 and sell it today you would earn a total of 6,183,100 from holding SK Hynix or generate 45.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. EBEST Investment Securities
Performance |
| Timeline |
| SK Hynix |
| EBEST Investment Sec |
SK Hynix and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and EBEST Investment
The main advantage of trading using opposite SK Hynix and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, EBEST 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| SK Hynix vs. SK Telecom Co | SK Hynix vs. KMH Hitech Co | SK Hynix vs. Daishin Information Communications | SK Hynix vs. Vitzro Tech Co |
| EBEST Investment vs. LG Display Co | EBEST Investment vs. CG Hi Tech | EBEST Investment vs. Daishin Information Communications | EBEST Investment vs. Haitai Confectionery Foods |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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