Correlation Between SK Holdings and HMM
Can any of the company-specific risk be diversified away by investing in both SK Holdings and HMM 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 Holdings and HMM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Holdings Co and HMM Co, you can compare the effects of market volatilities on SK Holdings and HMM 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 Holdings with a short position of HMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Holdings and HMM.
Diversification Opportunities for SK Holdings and HMM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 034730 and HMM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Holdings Co and HMM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMM Co and SK Holdings 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 Holdings Co are associated (or correlated) with HMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMM Co has no effect on the direction of SK Holdings i.e., SK Holdings and HMM go up and down completely randomly.
Pair Corralation between SK Holdings and HMM
If you would invest 15,010,000 in SK Holdings Co on November 2, 2024 and sell it today you would lose (160,000) from holding SK Holdings Co or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.72% |
| Values | Daily Returns |
SK Holdings Co vs. HMM Co
Performance |
| Timeline |
| SK Holdings |
| HMM Co |
SK Holdings and HMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Holdings and HMM
The main advantage of trading using opposite SK Holdings and HMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Holdings position performs unexpectedly, HMM 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 HMM will offset losses from the drop in HMM's long position.| SK Holdings vs. Clean Science co | SK Holdings vs. LG Display Co | SK Holdings vs. Korea Computer | SK Holdings vs. Shinsegae Engineering Construction |
| HMM vs. LG Household Healthcare | HMM vs. WONIK Materials CoLtd | HMM vs. Hyosung Advanced Materials | HMM vs. Lake Materials Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |