Correlation Between Tamul Multimedia and SK Hynix
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia 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 Tamul Multimedia and SK Hynix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamul Multimedia Co and SK Hynix, you can compare the effects of market volatilities on Tamul Multimedia 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 Tamul Multimedia with a short position of SK Hynix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and SK Hynix.
Diversification Opportunities for Tamul Multimedia and SK Hynix
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tamul and 000660 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and SK Hynix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Hynix and Tamul Multimedia 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 Tamul Multimedia Co 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 Tamul Multimedia i.e., Tamul Multimedia and SK Hynix go up and down completely randomly.
Pair Corralation between Tamul Multimedia and SK Hynix
Assuming the 90 days trading horizon Tamul Multimedia is expected to generate 2.21 times less return on investment than SK Hynix. In addition to that, Tamul Multimedia is 1.46 times more volatile than SK Hynix. It trades about 0.02 of its total potential returns per unit of risk. SK Hynix is currently generating about 0.08 per unit of volatility. If you would invest 7,945,389 in SK Hynix on August 25, 2024 and sell it today you would earn a total of 9,724,611 from holding SK Hynix or generate 122.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. SK Hynix
Performance |
| Timeline |
| Tamul Multimedia |
| SK Hynix |
Tamul Multimedia and SK Hynix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and SK Hynix
The main advantage of trading using opposite Tamul Multimedia and SK Hynix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia 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.| Tamul Multimedia vs. SK Hynix | Tamul Multimedia vs. People Technology | Tamul Multimedia vs. SIMMTECH Co | Tamul Multimedia vs. Haesung DS Co |
| SK Hynix vs. Korea Real Estate | SK Hynix vs. Korea Ratings Co | SK Hynix vs. IQuest Co | SK Hynix vs. Wonbang Tech 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 Stocks Directory module to find actively traded stocks across global markets.
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