Correlation Between SK Telecom and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco Co, you can compare the effects of market volatilities on SK Telecom and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Hansol Homedeco.
Diversification Opportunities for SK Telecom and Hansol Homedeco
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 017670 and Hansol is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of SK Telecom i.e., SK Telecom and Hansol Homedeco go up and down completely randomly.
Pair Corralation between SK Telecom and Hansol Homedeco
Assuming the 90 days trading horizon SK Telecom Co is expected to generate 0.71 times more return on investment than Hansol Homedeco. However, SK Telecom Co is 1.41 times less risky than Hansol Homedeco. It trades about 0.11 of its potential returns per unit of risk. Hansol Homedeco Co is currently generating about 0.04 per unit of risk. If you would invest 5,550,000 in SK Telecom Co on September 20, 2024 and sell it today you would earn a total of 210,000 from holding SK Telecom Co or generate 3.78% 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. Hansol Homedeco Co
Performance |
| Timeline |
| SK Telecom |
| Hansol Homedeco |
SK Telecom and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Hansol Homedeco
The main advantage of trading using opposite SK Telecom and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| SK Telecom vs. J Steel Co | SK Telecom vs. Samsung Publishing Co | SK Telecom vs. Cuckoo Electronics Co | SK Telecom vs. Dong A Steel Technology |
| Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. SK Hynix | Hansol Homedeco vs. POSCO Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |