Correlation Between Incar Financial and SK Hynix
Can any of the company-specific risk be diversified away by investing in both Incar Financial 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 Incar Financial and SK Hynix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and SK Hynix, you can compare the effects of market volatilities on Incar Financial 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 Incar Financial with a short position of SK Hynix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and SK Hynix.
Diversification Opportunities for Incar Financial and SK Hynix
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Incar and 000660 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and SK Hynix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Hynix and Incar Financial 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 Incar Financial Service 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 Incar Financial i.e., Incar Financial and SK Hynix go up and down completely randomly.
Pair Corralation between Incar Financial and SK Hynix
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 0.86 times more return on investment than SK Hynix. However, Incar Financial Service is 1.16 times less risky than SK Hynix. It trades about 0.1 of its potential returns per unit of risk. SK Hynix is currently generating about 0.08 per unit of risk. If you would invest 423,618 in Incar Financial Service on November 3, 2024 and sell it today you would earn a total of 149,382 from holding Incar Financial Service or generate 35.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incar Financial Service vs. SK Hynix
Performance |
| Timeline |
| Incar Financial Service |
| SK Hynix |
Incar Financial and SK Hynix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and SK Hynix
The main advantage of trading using opposite Incar Financial and SK Hynix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial 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.| Incar Financial vs. Koryo Credit Information | Incar Financial vs. Moadata Co | Incar Financial vs. KCC Engineering Construction | Incar Financial vs. Tuksu Engineering ConstructionLtd |
| SK Hynix vs. LEENO Industrial | SK Hynix vs. Pan Entertainment Co | SK Hynix vs. SKONEC Entertainment Co | SK Hynix vs. YG Entertainment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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