Correlation Between SK Hynix and Macromill Embrain
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Macromill Embrain 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 Macromill Embrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Macromill Embrain Co, you can compare the effects of market volatilities on SK Hynix and Macromill Embrain 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 Macromill Embrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Macromill Embrain.
Diversification Opportunities for SK Hynix and Macromill Embrain
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 000660 and Macromill is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Macromill Embrain Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macromill Embrain 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 Macromill Embrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macromill Embrain has no effect on the direction of SK Hynix i.e., SK Hynix and Macromill Embrain go up and down completely randomly.
Pair Corralation between SK Hynix and Macromill Embrain
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the Macromill Embrain. In addition to that, SK Hynix is 2.49 times more volatile than Macromill Embrain Co. It trades about -0.15 of its total potential returns per unit of risk. Macromill Embrain Co is currently generating about -0.28 per unit of volatility. If you would invest 220,000 in Macromill Embrain Co on August 27, 2024 and sell it today you would lose (16,000) from holding Macromill Embrain Co or give up 7.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Macromill Embrain Co
Performance |
| Timeline |
| SK Hynix |
| Macromill Embrain |
SK Hynix and Macromill Embrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Macromill Embrain
The main advantage of trading using opposite SK Hynix and Macromill Embrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Macromill Embrain 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 Macromill Embrain will offset losses from the drop in Macromill Embrain's long position.| SK Hynix vs. Cloud Air CoLtd | SK Hynix vs. Daou Data Corp | SK Hynix vs. Lotte Data Communication | SK Hynix vs. System and Application |
| Macromill Embrain vs. Samsung Electronics Co | Macromill Embrain vs. Samsung Electronics Co | Macromill Embrain vs. LG Energy Solution | Macromill Embrain vs. SK Hynix |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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