Correlation Between SK Hynix and CC International
Can any of the company-specific risk be diversified away by investing in both SK Hynix and CC International 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 CC International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and CC International Corp, you can compare the effects of market volatilities on SK Hynix and CC International 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 CC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and CC International.
Diversification Opportunities for SK Hynix and CC International
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 000660 and 352480 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and CC International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CC International Corp 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 CC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CC International Corp has no effect on the direction of SK Hynix i.e., SK Hynix and CC International go up and down completely randomly.
Pair Corralation between SK Hynix and CC International
Assuming the 90 days trading horizon SK Hynix is expected to generate 0.76 times more return on investment than CC International. However, SK Hynix is 1.31 times less risky than CC International. It trades about 0.04 of its potential returns per unit of risk. CC International Corp is currently generating about -0.02 per unit of risk. If you would invest 12,803,700 in SK Hynix on September 4, 2024 and sell it today you would earn a total of 3,076,300 from holding SK Hynix or generate 24.03% 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. CC International Corp
Performance |
| Timeline |
| SK Hynix |
| CC International Corp |
SK Hynix and CC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and CC International
The main advantage of trading using opposite SK Hynix and CC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, CC International 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 CC International will offset losses from the drop in CC International's long position.| SK Hynix vs. Youngsin Metal Industrial | SK Hynix vs. Kumho Industrial Co | SK Hynix vs. Kbi Metal Co | SK Hynix vs. Taeyang Metal Industrial |
| CC International vs. Samsung Electronics Co | CC International vs. Samsung Electronics Co | CC International vs. LG Energy Solution | CC International 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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