Correlation Between SK Holdings and Choil Aluminum
Can any of the company-specific risk be diversified away by investing in both SK Holdings and Choil Aluminum 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 Choil Aluminum 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 Choil Aluminum, you can compare the effects of market volatilities on SK Holdings and Choil Aluminum 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 Choil Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Holdings and Choil Aluminum.
Diversification Opportunities for SK Holdings and Choil Aluminum
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 034730 and Choil is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SK Holdings Co and Choil Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choil Aluminum 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 Choil Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choil Aluminum has no effect on the direction of SK Holdings i.e., SK Holdings and Choil Aluminum go up and down completely randomly.
Pair Corralation between SK Holdings and Choil Aluminum
Assuming the 90 days trading horizon SK Holdings Co is expected to generate 0.67 times more return on investment than Choil Aluminum. However, SK Holdings Co is 1.49 times less risky than Choil Aluminum. It trades about -0.01 of its potential returns per unit of risk. Choil Aluminum is currently generating about -0.01 per unit of risk. If you would invest 17,973,600 in SK Holdings Co on November 8, 2024 and sell it today you would lose (3,533,600) from holding SK Holdings Co or give up 19.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
SK Holdings Co vs. Choil Aluminum
Performance |
| Timeline |
| SK Holdings |
| Choil Aluminum |
SK Holdings and Choil Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Holdings and Choil Aluminum
The main advantage of trading using opposite SK Holdings and Choil Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Holdings position performs unexpectedly, Choil Aluminum 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 Choil Aluminum will offset losses from the drop in Choil Aluminum's long position.| SK Holdings vs. Pureun Mutual Savings | SK Holdings vs. Duksan Hi Metal | SK Holdings vs. Shinhan Financial Group | SK Holdings vs. Youngsin Metal Industrial |
| Choil Aluminum vs. Daou Technology | Choil Aluminum vs. BIT Computer Co | Choil Aluminum vs. Adaptive Plasma Technology | Choil Aluminum vs. Dong A Steel Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |