Correlation Between SK Hynix and Daishin Balance
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Daishin Balance 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 Daishin Balance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Daishin Balance No8, you can compare the effects of market volatilities on SK Hynix and Daishin Balance 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 Daishin Balance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Daishin Balance.
Diversification Opportunities for SK Hynix and Daishin Balance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 000660 and Daishin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Daishin Balance No8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daishin Balance No8 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 Daishin Balance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daishin Balance No8 has no effect on the direction of SK Hynix i.e., SK Hynix and Daishin Balance go up and down completely randomly.
Pair Corralation between SK Hynix and Daishin Balance
Assuming the 90 days trading horizon SK Hynix is expected to generate 1.05 times more return on investment than Daishin Balance. However, SK Hynix is 1.05 times more volatile than Daishin Balance No8. It trades about -0.15 of its potential returns per unit of risk. Daishin Balance No8 is currently generating about -0.51 per unit of risk. If you would invest 19,600,000 in SK Hynix on August 27, 2024 and sell it today you would lose (1,930,000) from holding SK Hynix or give up 9.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Hynix vs. Daishin Balance No8
Performance |
| Timeline |
| SK Hynix |
| Daishin Balance No8 |
SK Hynix and Daishin Balance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Daishin Balance
The main advantage of trading using opposite SK Hynix and Daishin Balance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Daishin Balance 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 Daishin Balance will offset losses from the drop in Daishin Balance'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 |
| Daishin Balance vs. Pureun Mutual Savings | Daishin Balance vs. Coloray International Investment | Daishin Balance vs. Cuckoo Homesys Co | Daishin Balance vs. Sangsangin Investment Securities |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |