Correlation Between SK Telecom and SeAH Besteel
Can any of the company-specific risk be diversified away by investing in both SK Telecom and SeAH Besteel 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 Telecom and SeAH Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Telecom Co and SeAH Besteel Corp, you can compare the effects of market volatilities on SK Telecom and SeAH Besteel 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 Telecom with a short position of SeAH Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and SeAH Besteel.
Diversification Opportunities for SK Telecom and SeAH Besteel
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 017670 and SeAH is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and SeAH Besteel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Besteel Corp and SK Telecom 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 Telecom Co are associated (or correlated) with SeAH Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Besteel Corp has no effect on the direction of SK Telecom i.e., SK Telecom and SeAH Besteel go up and down completely randomly.
Pair Corralation between SK Telecom and SeAH Besteel
Assuming the 90 days trading horizon SK Telecom Co is expected to under-perform the SeAH Besteel. But the stock apears to be less risky and, when comparing its historical volatility, SK Telecom Co is 1.51 times less risky than SeAH Besteel. The stock trades about -0.04 of its potential returns per unit of risk. The SeAH Besteel Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,976,000 in SeAH Besteel Corp on October 29, 2024 and sell it today you would lose (2,000) from holding SeAH Besteel Corp or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. SeAH Besteel Corp
Performance |
| Timeline |
| SK Telecom |
| SeAH Besteel Corp |
SK Telecom and SeAH Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and SeAH Besteel
The main advantage of trading using opposite SK Telecom and SeAH Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, SeAH Besteel 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 SeAH Besteel will offset losses from the drop in SeAH Besteel's long position.| SK Telecom vs. Shinhan Inverse Copper | SK Telecom vs. Sam Yang Foods | SK Telecom vs. Daishin Information Communications | SK Telecom vs. Kisan Telecom Co |
| SeAH Besteel vs. KB Financial Group | SeAH Besteel vs. Shinhan Financial Group | SeAH Besteel vs. Hana Financial | SeAH Besteel vs. Woori Financial Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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