Correlation Between MagnaChip Semiconductor and CK HUTCHISON

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

By analyzing existing cross correlation between MagnaChip Semiconductor Corp and CK HUTCHISON HLDGS, you can compare the effects of market volatilities on MagnaChip Semiconductor and CK HUTCHISON 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 MagnaChip Semiconductor with a short position of CK HUTCHISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and CK HUTCHISON.

Diversification Opportunities for MagnaChip Semiconductor and CK HUTCHISON

0.0

Correlation Coefficient

MagnaChip Semiconductor  CK HUTCHISON

Pay attention - limited upside

The 3 months correlation between MagnaChip and 2CKA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor Corp and CK HUTCHISON HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK HUTCHISON HLDGS and MagnaChip Semiconductor 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 MagnaChip Semiconductor Corp are associated (or correlated) with CK HUTCHISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK HUTCHISON HLDGS has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and CK HUTCHISON go up and down completely randomly.

Pair Corralation between MagnaChip Semiconductor and CK HUTCHISON

If you would invest (100.00) in CK HUTCHISON HLDGS on October 21, 2024 and sell it today you would earn a total of  100.00  from holding CK HUTCHISON HLDGS or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MagnaChip Semiconductor Corp  vs.  CK HUTCHISON HLDGS

MagnaChip Semiconductor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MagnaChip Semiconductor Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

CK HUTCHISON HLDGS

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days CK HUTCHISON HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, CK HUTCHISON is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MagnaChip Semiconductor and CK HUTCHISON

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

The idea behind MagnaChip Semiconductor Corp and CK HUTCHISON HLDGS 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.