Correlation Between GemVaxKAEL CoLtd and SK Hynix
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and SK Hynix 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 GemVaxKAEL CoLtd and SK Hynix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and SK Hynix, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and SK Hynix 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 GemVaxKAEL CoLtd with a short position of SK Hynix. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and SK Hynix.
Diversification Opportunities for GemVaxKAEL CoLtd and SK Hynix
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GemVaxKAEL and 000660 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and SK Hynix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Hynix and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd are associated (or correlated) with SK Hynix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Hynix has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and SK Hynix go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and SK Hynix
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to under-perform the SK Hynix. In addition to that, GemVaxKAEL CoLtd is 2.32 times more volatile than SK Hynix. It trades about -0.07 of its total potential returns per unit of risk. SK Hynix is currently generating about 0.03 per unit of volatility. If you would invest 17,460,000 in SK Hynix on August 29, 2024 and sell it today you would earn a total of 250,000 from holding SK Hynix or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. SK Hynix
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| SK Hynix |
GemVaxKAEL CoLtd and SK Hynix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and SK Hynix
The main advantage of trading using opposite GemVaxKAEL CoLtd and SK Hynix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, SK Hynix 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 Hynix will offset losses from the drop in SK Hynix's long position.| GemVaxKAEL CoLtd vs. Daejung Chemicals Metals | GemVaxKAEL CoLtd vs. Stic Investments | GemVaxKAEL CoLtd vs. Miwon Chemicals Co | GemVaxKAEL CoLtd vs. SK Chemicals Co |
| SK Hynix vs. Finebesteel | SK Hynix vs. Gyeongnam Steel Co | SK Hynix vs. Jeil Steel Mfg | SK Hynix vs. Echomarketing CoLtd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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