Correlation Between SK Telecom and Wonil Special
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Wonil Special 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 Wonil Special 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 Wonil Special Steel, you can compare the effects of market volatilities on SK Telecom and Wonil Special 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 Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Wonil Special.
Diversification Opportunities for SK Telecom and Wonil Special
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 017670 and Wonil is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel 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 Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of SK Telecom i.e., SK Telecom and Wonil Special go up and down completely randomly.
Pair Corralation between SK Telecom and Wonil Special
Assuming the 90 days trading horizon SK Telecom Co is expected to under-perform the Wonil Special. In addition to that, SK Telecom is 1.51 times more volatile than Wonil Special Steel. It trades about -0.17 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about 0.44 per unit of volatility. If you would invest 690,630 in Wonil Special Steel on October 15, 2024 and sell it today you would earn a total of 42,370 from holding Wonil Special Steel or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. Wonil Special Steel
Performance |
| Timeline |
| SK Telecom |
| Wonil Special Steel |
SK Telecom and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Wonil Special
The main advantage of trading using opposite SK Telecom and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| SK Telecom vs. ENF Technology Co | SK Telecom vs. LG Chemicals | SK Telecom vs. KG Eco Technology | SK Telecom vs. Puloon Technology |
| Wonil Special vs. Polaris Office Corp | Wonil Special vs. KyungIn Electronics Co | Wonil Special vs. Anam Electronics Co | Wonil Special vs. Samsung Electronics Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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