Correlation Between SK Hynix and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Ewon Comfortech 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 Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Ewon Comfortech Co, you can compare the effects of market volatilities on SK Hynix and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Ewon Comfortech.
Diversification Opportunities for SK Hynix and Ewon Comfortech
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 000660 and Ewon is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of SK Hynix i.e., SK Hynix and Ewon Comfortech go up and down completely randomly.
Pair Corralation between SK Hynix and Ewon Comfortech
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.56 times more return on investment than Ewon Comfortech. However, SK Hynix is 1.77 times less risky than Ewon Comfortech. It trades about 0.08 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.06 per unit of risk. If you would invest 8,921,825 in SK Hynix on November 2, 2024 and sell it today you would earn a total of 13,178,175 from holding SK Hynix or generate 147.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Ewon Comfortech Co
Performance |
| Timeline |
| SK Hynix |
| Ewon Comfortech |
SK Hynix and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Ewon Comfortech
The main advantage of trading using opposite SK Hynix and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| SK Hynix vs. LEENO Industrial | SK Hynix vs. Pan Entertainment Co | SK Hynix vs. SKONEC Entertainment Co | SK Hynix vs. YG Entertainment |
| Ewon Comfortech vs. Namhwa Industrial Co | Ewon Comfortech vs. Daesung Industrial Co | Ewon Comfortech vs. Lee Ku Industrial | Ewon Comfortech vs. Taegu Broadcasting |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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