Correlation Between SK Holdings and Helixmith

Can any of the company-specific risk be diversified away by investing in both SK Holdings and Helixmith 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 SK Holdings and Helixmith into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SK Holdings Co and Helixmith Co, you can compare the effects of market volatilities on SK Holdings and Helixmith 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 Holdings with a short position of Helixmith. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Holdings and Helixmith.

Diversification Opportunities for SK Holdings and Helixmith

0.0

Correlation Coefficient

SK Holdings  Helixmith

Pay attention - limited upside

The 3 months correlation between 034730 and Helixmith is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Holdings Co and Helixmith Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helixmith and SK Holdings 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 Holdings Co are associated (or correlated) with Helixmith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helixmith has no effect on the direction of SK Holdings i.e., SK Holdings and Helixmith go up and down completely randomly.

Pair Corralation between SK Holdings and Helixmith

Assuming the 90 days trading horizon SK Holdings Co is expected to generate 0.65 times more return on investment than Helixmith. However, SK Holdings Co is 1.53 times less risky than Helixmith. It trades about 0.05 of its potential returns per unit of risk. Helixmith Co is currently generating about -0.08 per unit of risk. If you would invest  13,150,000  in SK Holdings Co on December 30, 2024 and sell it today you would earn a total of  550,000  from holding SK Holdings Co or generate 4.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SK Holdings Co  vs.  Helixmith Co

SK Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SK Holdings Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SK Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Helixmith

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helixmith Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with SK Holdings and Helixmith

The main advantage of trading using opposite SK Holdings and Helixmith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Holdings position performs unexpectedly, Helixmith 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 Helixmith will offset losses from the drop in Helixmith's long position.

The idea behind SK Holdings Co and Helixmith Co 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.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.