Correlation Between SK Hynix and Cube Entertainment
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Cube Entertainment 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 Cube Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Cube Entertainment, you can compare the effects of market volatilities on SK Hynix and Cube Entertainment 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 Cube Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Cube Entertainment.
Diversification Opportunities for SK Hynix and Cube Entertainment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 000660 and Cube is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Cube Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cube Entertainment 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 Cube Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cube Entertainment has no effect on the direction of SK Hynix i.e., SK Hynix and Cube Entertainment go up and down completely randomly.
Pair Corralation between SK Hynix and Cube Entertainment
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.86 times more return on investment than Cube Entertainment. However, SK Hynix is 1.16 times less risky than Cube Entertainment. It trades about 0.08 of its potential returns per unit of risk. Cube Entertainment is currently generating about -0.02 per unit of risk. If you would invest 8,764,982 in SK Hynix on August 29, 2024 and sell it today you would earn a total of 8,945,018 from holding SK Hynix or generate 102.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Cube Entertainment
Performance |
| Timeline |
| SK Hynix |
| Cube Entertainment |
SK Hynix and Cube Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Cube Entertainment
The main advantage of trading using opposite SK Hynix and Cube Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Cube Entertainment 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 Cube Entertainment will offset losses from the drop in Cube Entertainment's long position.| SK Hynix vs. Korea Real Estate | SK Hynix vs. Korea Ratings Co | SK Hynix vs. IQuest Co | SK Hynix vs. Wonbang Tech Co |
| Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. Samsung Electronics Co | Cube Entertainment vs. LG Energy Solution | Cube Entertainment 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |