Correlation Between SK Hynix and Deutsche Wohnen
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By analyzing existing cross correlation between SK hynix and Deutsche Wohnen SE, you can compare the effects of market volatilities on SK Hynix and Deutsche Wohnen 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 SK Hynix with a short position of Deutsche Wohnen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Hynix and Deutsche Wohnen.
Diversification Opportunities for SK Hynix and Deutsche Wohnen
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HY9H and Deutsche is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SK hynix and Deutsche Wohnen SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Wohnen SE and SK Hynix 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 SK hynix are associated (or correlated) with Deutsche Wohnen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Wohnen SE has no effect on the direction of SK Hynix i.e., SK Hynix and Deutsche Wohnen go up and down completely randomly.
Pair Corralation between SK Hynix and Deutsche Wohnen
Assuming the 90 days trading horizon SK hynix is expected to under-perform the Deutsche Wohnen. In addition to that, SK Hynix is 2.77 times more volatile than Deutsche Wohnen SE. It trades about -0.03 of its total potential returns per unit of risk. Deutsche Wohnen SE is currently generating about 0.12 per unit of volatility. If you would invest 2,270 in Deutsche Wohnen SE on November 7, 2024 and sell it today you would earn a total of 85.00 from holding Deutsche Wohnen SE or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK hynix vs. Deutsche Wohnen SE
Performance |
| Timeline |
| SK hynix |
| Deutsche Wohnen SE |
SK Hynix and Deutsche Wohnen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Hynix and Deutsche Wohnen
The main advantage of trading using opposite SK Hynix and Deutsche Wohnen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Hynix position performs unexpectedly, Deutsche Wohnen 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 Deutsche Wohnen will offset losses from the drop in Deutsche Wohnen's long position.The idea behind SK hynix and Deutsche Wohnen SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Deutsche Wohnen vs. Daito Trust Construction | Deutsche Wohnen vs. Hitachi Construction Machinery | Deutsche Wohnen vs. COPLAND ROAD CAPITAL | Deutsche Wohnen vs. NAGOYA RAILROAD |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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