Correlation Between SK Hynix and Medy Tox
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Medy Tox 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 Medy Tox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Medy Tox, you can compare the effects of market volatilities on SK Hynix and Medy Tox 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 Medy Tox. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Medy Tox.
Diversification Opportunities for SK Hynix and Medy Tox
Average diversification
The 3 months correlation between 000660 and Medy is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Medy Tox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medy Tox 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 Medy Tox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medy Tox has no effect on the direction of SK Hynix i.e., SK Hynix and Medy Tox go up and down completely randomly.
Pair Corralation between SK Hynix and Medy Tox
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.74 times more return on investment than Medy Tox. However, SK Hynix is 1.35 times less risky than Medy Tox. It trades about 0.08 of its potential returns per unit of risk. Medy Tox is currently generating about 0.02 per unit of risk. If you would invest 7,631,497 in SK Hynix on September 13, 2024 and sell it today you would earn a total of 9,548,503 from holding SK Hynix or generate 125.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Medy Tox
Performance |
| Timeline |
| SK Hynix |
| Medy Tox |
SK Hynix and Medy Tox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Medy Tox
The main advantage of trading using opposite SK Hynix and Medy Tox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Medy Tox 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 Medy Tox will offset losses from the drop in Medy Tox's long position.| SK Hynix vs. Cube Entertainment | SK Hynix vs. Dreamus Company | SK Hynix vs. LG Energy Solution | SK Hynix vs. Dongwon System |
| Medy Tox vs. Samsung Electronics Co | Medy Tox vs. Samsung Electronics Co | Medy Tox vs. SK Hynix | Medy Tox vs. SK Holdings Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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