Correlation Between SK Hynix and Samhyun
Can any of the company-specific risk be diversified away by investing in both SK Hynix and Samhyun 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 Samhyun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Hynix and Samhyun, you can compare the effects of market volatilities on SK Hynix and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Samhyun.
Diversification Opportunities for SK Hynix and Samhyun
Pay attention - limited upside
The 3 months correlation between 000660 and Samhyun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Hynix and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of SK Hynix i.e., SK Hynix and Samhyun go up and down completely randomly.
Pair Corralation between SK Hynix and Samhyun
Assuming the 90 days trading horizon SK Hynix is expected to under-perform the Samhyun. But the stock apears to be less risky and, when comparing its historical volatility, SK Hynix is 1.22 times less risky than Samhyun. The stock trades about -0.05 of its potential returns per unit of risk. The Samhyun is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 936,000 in Samhyun on November 7, 2024 and sell it today you would earn a total of 301,000 from holding Samhyun or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
SK Hynix vs. Samhyun
Performance |
| Timeline |
| SK Hynix |
| Samhyun |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Hynix and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Samhyun
The main advantage of trading using opposite SK Hynix and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.| SK Hynix vs. Dongbang Transport Logistics | SK Hynix vs. Choil Aluminum | SK Hynix vs. Ewon Comfortech Co | SK Hynix vs. Dongnam Chemical Co |
| Samhyun vs. Dongbang Transport Logistics | Samhyun vs. SK Chemicals Co | Samhyun vs. Pan Entertainment Co | Samhyun vs. Seoul Electronics Telecom |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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