Correlation Between SK Telecom and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Miwon Chemical 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 Miwon Chemical 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 Miwon Chemical, you can compare the effects of market volatilities on SK Telecom and Miwon Chemical 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 Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Miwon Chemical.
Diversification Opportunities for SK Telecom and Miwon Chemical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 017670 and Miwon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical 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 Miwon Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemical has no effect on the direction of SK Telecom i.e., SK Telecom and Miwon Chemical go up and down completely randomly.
Pair Corralation between SK Telecom and Miwon Chemical
Assuming the 90 days trading horizon SK Telecom Co is expected to generate 1.02 times more return on investment than Miwon Chemical. However, SK Telecom is 1.02 times more volatile than Miwon Chemical. It trades about 0.08 of its potential returns per unit of risk. Miwon Chemical is currently generating about 0.07 per unit of risk. If you would invest 4,387,853 in SK Telecom Co on August 29, 2024 and sell it today you would earn a total of 1,442,147 from holding SK Telecom Co or generate 32.87% 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. Miwon Chemical
Performance |
Timeline |
SK Telecom |
Miwon Chemical |
SK Telecom and Miwon Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SK Telecom and Miwon Chemical
The main advantage of trading using opposite SK Telecom and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Miwon Chemical 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 Miwon Chemical will offset losses from the drop in Miwon Chemical's long position.SK Telecom vs. Barunson Entertainment Arts | SK Telecom vs. Derkwoo Electronics Co | SK Telecom vs. Tamul Multimedia Co | SK Telecom vs. SM Entertainment Co |
Miwon Chemical vs. Homecast CoLtd | Miwon Chemical vs. Hankukpackage Co | Miwon Chemical vs. Sam Yang Foods | Miwon Chemical vs. Polaris Office Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |