Correlation Between SK Hynix and Dongwoon Anatech
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Dongwoon Anatech 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 Dongwoon Anatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Dongwoon Anatech Co, you can compare the effects of market volatilities on SK Hynix and Dongwoon Anatech 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 Dongwoon Anatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Dongwoon Anatech.
Diversification Opportunities for SK Hynix and Dongwoon Anatech
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 000660 and Dongwoon is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Dongwoon Anatech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongwoon Anatech 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 Dongwoon Anatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongwoon Anatech has no effect on the direction of SK Hynix i.e., SK Hynix and Dongwoon Anatech go up and down completely randomly.
Pair Corralation between SK Hynix and Dongwoon Anatech
Assuming the 90 days trading horizon SK Hynix is expected to generate 1.36 times more return on investment than Dongwoon Anatech. However, SK Hynix is 1.36 times more volatile than Dongwoon Anatech Co. It trades about 0.13 of its potential returns per unit of risk. Dongwoon Anatech Co is currently generating about 0.02 per unit of risk. If you would invest 17,930,000 in SK Hynix on October 17, 2024 and sell it today you would earn a total of 1,570,000 from holding SK Hynix or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Dongwoon Anatech Co
Performance |
| Timeline |
| SK Hynix |
| Dongwoon Anatech |
SK Hynix and Dongwoon Anatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Dongwoon Anatech
The main advantage of trading using opposite SK Hynix and Dongwoon Anatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Dongwoon Anatech 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 Dongwoon Anatech will offset losses from the drop in Dongwoon Anatech's long position.| SK Hynix vs. PJ Electronics Co | SK Hynix vs. Hankook Furniture Co | SK Hynix vs. Homecast CoLtd | SK Hynix vs. Polaris Office Corp |
| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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