Correlation Between DeviceENGCOLtd and SK Hynix
Can any of the company-specific risk be diversified away by investing in both DeviceENGCOLtd 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 DeviceENGCOLtd and SK Hynix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DeviceENGCOLtd and SK Hynix, you can compare the effects of market volatilities on DeviceENGCOLtd 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 DeviceENGCOLtd with a short position of SK Hynix. Check out your portfolio center. Please also check ongoing floating volatility patterns of DeviceENGCOLtd and SK Hynix.
Diversification Opportunities for DeviceENGCOLtd and SK Hynix
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DeviceENGCOLtd and 000660 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DeviceENGCOLtd and SK Hynix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Hynix and DeviceENGCOLtd 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 DeviceENGCOLtd 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 DeviceENGCOLtd i.e., DeviceENGCOLtd and SK Hynix go up and down completely randomly.
Pair Corralation between DeviceENGCOLtd and SK Hynix
Assuming the 90 days trading horizon DeviceENGCOLtd is expected to generate 0.53 times more return on investment than SK Hynix. However, DeviceENGCOLtd is 1.89 times less risky than SK Hynix. It trades about -0.18 of its potential returns per unit of risk. SK Hynix is currently generating about -0.18 per unit of risk. If you would invest 1,338,000 in DeviceENGCOLtd on September 2, 2024 and sell it today you would lose (85,000) from holding DeviceENGCOLtd or give up 6.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DeviceENGCOLtd vs. SK Hynix
Performance |
| Timeline |
| DeviceENGCOLtd |
| SK Hynix |
DeviceENGCOLtd and SK Hynix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DeviceENGCOLtd and SK Hynix
The main advantage of trading using opposite DeviceENGCOLtd and SK Hynix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DeviceENGCOLtd 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.| DeviceENGCOLtd vs. SK Hynix | DeviceENGCOLtd vs. LX Semicon Co | DeviceENGCOLtd vs. People Technology | DeviceENGCOLtd vs. SIMMTECH Co |
| SK Hynix vs. Nice Information Telecommunication | SK Hynix vs. PJ Metal Co | SK Hynix vs. iNtRON Biotechnology | SK Hynix vs. Dongil Metal 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |