Correlation Between SK Hynix and Maniker F
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Maniker F 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 Maniker F into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Maniker F G, you can compare the effects of market volatilities on SK Hynix and Maniker F 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 Maniker F. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Maniker F.
Diversification Opportunities for SK Hynix and Maniker F
Poor diversification
The 3 months correlation between 000660 and Maniker is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Maniker F G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maniker F G 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 Maniker F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maniker F G has no effect on the direction of SK Hynix i.e., SK Hynix and Maniker F go up and down completely randomly.
Pair Corralation between SK Hynix and Maniker F
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the Maniker F. In addition to that, SK Hynix is 2.01 times more volatile than Maniker F G. It trades about -0.26 of its total potential returns per unit of risk. Maniker F G is currently generating about -0.11 per unit of volatility. If you would invest 294,500 in Maniker F G on August 31, 2024 and sell it today you would lose (12,000) from holding Maniker F G or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SK Hynix vs. Maniker F G
Performance |
| Timeline |
| SK Hynix |
| Maniker F G |
SK Hynix and Maniker F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Maniker F
The main advantage of trading using opposite SK Hynix and Maniker F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Maniker F 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 Maniker F will offset losses from the drop in Maniker F's long position.| SK Hynix vs. Dongsin Engineering Construction | SK Hynix vs. Doosan Fuel Cell | SK Hynix vs. Daishin Balance 1 | SK Hynix vs. Total Soft Bank |
| Maniker F vs. Choil Aluminum | Maniker F vs. Daejung Chemicals Metals | Maniker F vs. DataSolution | Maniker F vs. Hanjoo Light Metal |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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