Correlation Between SK Hynix and Showbox Corp
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Showbox Corp 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 Showbox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Showbox Corp, you can compare the effects of market volatilities on SK Hynix and Showbox Corp 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 Showbox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Showbox Corp.
Diversification Opportunities for SK Hynix and Showbox Corp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 000660 and Showbox is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Showbox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Showbox Corp 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 Showbox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Showbox Corp has no effect on the direction of SK Hynix i.e., SK Hynix and Showbox Corp go up and down completely randomly.
Pair Corralation between SK Hynix and Showbox Corp
Assuming the 90 days trading horizon SK Hynix is expected to generate 3.57 times less return on investment than Showbox Corp. In addition to that, SK Hynix is 1.51 times more volatile than Showbox Corp. It trades about 0.08 of its total potential returns per unit of risk. Showbox Corp is currently generating about 0.43 per unit of volatility. If you would invest 293,000 in Showbox Corp on November 27, 2024 and sell it today you would earn a total of 39,000 from holding Showbox Corp or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
SK Hynix vs. Showbox Corp
Performance |
| Timeline |
| SK Hynix |
| Showbox Corp |
SK Hynix and Showbox Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Showbox Corp
The main advantage of trading using opposite SK Hynix and Showbox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Showbox Corp 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 Showbox Corp will offset losses from the drop in Showbox Corp's long position.| SK Hynix vs. DC Media Co | SK Hynix vs. Vissem Electronics Co | SK Hynix vs. Sungho Electronics Corp | SK Hynix vs. MediaZen |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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