Correlation Between SK Telecom and Tamul Multimedia
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Tamul Multimedia 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 Tamul Multimedia 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 Tamul Multimedia Co, you can compare the effects of market volatilities on SK Telecom and Tamul Multimedia 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 Tamul Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Tamul Multimedia.
Diversification Opportunities for SK Telecom and Tamul Multimedia
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 017670 and Tamul is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Tamul Multimedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamul Multimedia 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 Tamul Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamul Multimedia has no effect on the direction of SK Telecom i.e., SK Telecom and Tamul Multimedia go up and down completely randomly.
Pair Corralation between SK Telecom and Tamul Multimedia
Assuming the 90 days trading horizon SK Telecom Co is expected to generate 0.3 times more return on investment than Tamul Multimedia. However, SK Telecom Co is 3.38 times less risky than Tamul Multimedia. It trades about 0.06 of its potential returns per unit of risk. Tamul Multimedia Co is currently generating about 0.0 per unit of risk. If you would invest 4,095,636 in SK Telecom Co on October 14, 2024 and sell it today you would earn a total of 1,464,364 from holding SK Telecom Co or generate 35.75% 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. Tamul Multimedia Co
Performance |
| Timeline |
| SK Telecom |
| Tamul Multimedia |
SK Telecom and Tamul Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Tamul Multimedia
The main advantage of trading using opposite SK Telecom and Tamul Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Tamul Multimedia 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 Tamul Multimedia will offset losses from the drop in Tamul Multimedia'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 |
| Tamul Multimedia vs. SK Telecom Co | Tamul Multimedia vs. Ssangyong Information Communication | Tamul Multimedia vs. KTB Investment Securities | Tamul Multimedia vs. Nable Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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