Correlation Between INFINITT Healthcare and SK Holdings
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and SK Holdings 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 INFINITT Healthcare and SK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFINITT Healthcare Co and SK Holdings Co, you can compare the effects of market volatilities on INFINITT Healthcare and SK Holdings 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 INFINITT Healthcare with a short position of SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and SK Holdings.
Diversification Opportunities for INFINITT Healthcare and SK Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between INFINITT and 034730 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Holdings and INFINITT Healthcare 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 INFINITT Healthcare Co are associated (or correlated) with SK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Holdings has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and SK Holdings go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and SK Holdings
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.98 times more return on investment than SK Holdings. However, INFINITT Healthcare Co is 1.02 times less risky than SK Holdings. It trades about -0.01 of its potential returns per unit of risk. SK Holdings Co is currently generating about -0.02 per unit of risk. If you would invest 554,000 in INFINITT Healthcare Co on September 14, 2024 and sell it today you would lose (128,000) from holding INFINITT Healthcare Co or give up 23.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. SK Holdings Co
Performance |
| Timeline |
| INFINITT Healthcare |
| SK Holdings |
INFINITT Healthcare and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and SK Holdings
The main advantage of trading using opposite INFINITT Healthcare and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, SK Holdings 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 SK Holdings will offset losses from the drop in SK Holdings' long position.| INFINITT Healthcare vs. Samsung Electronics Co | INFINITT Healthcare vs. Samsung Electronics Co | INFINITT Healthcare vs. SK Hynix | INFINITT Healthcare vs. SK Holdings Co |
| SK Holdings vs. Korea New Network | SK Holdings vs. Solution Advanced Technology | SK Holdings vs. Busan Industrial Co | SK Holdings vs. Busan Ind |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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