Correlation Between SK Hynix and V One
Can any of the company-specific risk be diversified away by investing in both SK Hynix and V One 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 V One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and V One Tech Co, you can compare the effects of market volatilities on SK Hynix and V One 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 V One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and V One.
Diversification Opportunities for SK Hynix and V One
Very good diversification
The 3 months correlation between 000660 and 251630 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and V One Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V One Tech 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 V One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V One Tech has no effect on the direction of SK Hynix i.e., SK Hynix and V One go up and down completely randomly.
Pair Corralation between SK Hynix and V One
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.9 times more return on investment than V One. However, SK Hynix is 1.11 times less risky than V One. It trades about 0.06 of its potential returns per unit of risk. V One Tech Co is currently generating about -0.1 per unit of risk. If you would invest 11,532,500 in SK Hynix on September 12, 2024 and sell it today you would earn a total of 5,507,500 from holding SK Hynix or generate 47.76% 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. V One Tech Co
Performance |
| Timeline |
| SK Hynix |
| V One Tech |
SK Hynix and V One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and V One
The main advantage of trading using opposite SK Hynix and V One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, V One 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 V One will offset losses from the drop in V One's long position.| SK Hynix vs. Cube Entertainment | SK Hynix vs. Dreamus Company | SK Hynix vs. LG Energy Solution | SK Hynix vs. Dongwon System |
| V One vs. Samsung Electronics Co | V One vs. Samsung Electronics Co | V One vs. LG Energy Solution | V One 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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