Correlation Between SK Telecom and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal Co, you can compare the effects of market volatilities on SK Telecom and Seoyon Topmetal 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 Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Seoyon Topmetal.
Diversification Opportunities for SK Telecom and Seoyon Topmetal
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 017670 and Seoyon is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal 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 Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of SK Telecom i.e., SK Telecom and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between SK Telecom and Seoyon Topmetal
Assuming the 90 days trading horizon SK Telecom Co is expected to under-perform the Seoyon Topmetal. But the stock apears to be less risky and, when comparing its historical volatility, SK Telecom Co is 1.37 times less risky than Seoyon Topmetal. The stock trades about -0.22 of its potential returns per unit of risk. The Seoyon Topmetal Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 347,500 in Seoyon Topmetal Co on October 25, 2024 and sell it today you would earn a total of 5,000 from holding Seoyon Topmetal Co or generate 1.44% 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. Seoyon Topmetal Co
Performance |
| Timeline |
| SK Telecom |
| Seoyon Topmetal |
SK Telecom and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Seoyon Topmetal
The main advantage of trading using opposite SK Telecom and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| SK Telecom vs. LG Household Healthcare | SK Telecom vs. Hansol Homedeco Co | SK Telecom vs. Hanjin Transportation Co | SK Telecom vs. Kukil Metal Co |
| Seoyon Topmetal vs. Neungyule Education | Seoyon Topmetal vs. Sempio Foods Co | Seoyon Topmetal vs. Daesung Hi Tech Co | Seoyon Topmetal vs. Kukil Metal 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |