Correlation Between SK Telecom and NH SPAC
Can any of the company-specific risk be diversified away by investing in both SK Telecom and NH SPAC 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 NH SPAC 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 NH SPAC 8, you can compare the effects of market volatilities on SK Telecom and NH SPAC 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 NH SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and NH SPAC.
Diversification Opportunities for SK Telecom and NH SPAC
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 017670 and 225570 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and NH SPAC 8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH SPAC 8 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 NH SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH SPAC 8 has no effect on the direction of SK Telecom i.e., SK Telecom and NH SPAC go up and down completely randomly.
Pair Corralation between SK Telecom and NH SPAC
Assuming the 90 days trading horizon SK Telecom Co is expected to generate 0.61 times more return on investment than NH SPAC. However, SK Telecom Co is 1.63 times less risky than NH SPAC. It trades about 0.15 of its potential returns per unit of risk. NH SPAC 8 is currently generating about -0.14 per unit of risk. If you would invest 5,670,000 in SK Telecom Co on September 3, 2024 and sell it today you would earn a total of 470,000 from holding SK Telecom Co or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. NH SPAC 8
Performance |
| Timeline |
| SK Telecom |
| NH SPAC 8 |
SK Telecom and NH SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and NH SPAC
The main advantage of trading using opposite SK Telecom and NH SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, NH SPAC 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 NH SPAC will offset losses from the drop in NH SPAC's long position.| SK Telecom vs. Green Cross Medical | SK Telecom vs. LG Electronics Pfd | SK Telecom vs. Samji Electronics Co | SK Telecom vs. Anam 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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