Correlation Between SK Hynix and CU Medical
Can any of the company-specific risk be diversified away by investing in both SK Hynix and CU Medical 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 CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and CU Medical Systems, you can compare the effects of market volatilities on SK Hynix and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and CU Medical.
Diversification Opportunities for SK Hynix and CU Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 000660 and 115480 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of SK Hynix i.e., SK Hynix and CU Medical go up and down completely randomly.
Pair Corralation between SK Hynix and CU Medical
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the CU Medical. In addition to that, SK Hynix is 1.48 times more volatile than CU Medical Systems. It trades about -0.21 of its total potential returns per unit of risk. CU Medical Systems is currently generating about -0.29 per unit of volatility. If you would invest 74,900 in CU Medical Systems on September 1, 2024 and sell it today you would lose (9,400) from holding CU Medical Systems or give up 12.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. CU Medical Systems
Performance |
| Timeline |
| SK Hynix |
| CU Medical Systems |
SK Hynix and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and CU Medical
The main advantage of trading using opposite SK Hynix and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| SK Hynix vs. NH Investment Securities | SK Hynix vs. Kakao Games Corp | SK Hynix vs. Mgame Corp | SK Hynix vs. Jin Air Co |
| CU Medical vs. AptaBio Therapeutics | CU Medical vs. KT Hitel | CU Medical vs. SillaJen | CU Medical vs. Cytogen |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |