Correlation Between SK Telecom and Lotte Reit
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Lotte Reit 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 Lotte Reit 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 Lotte Reit Co, you can compare the effects of market volatilities on SK Telecom and Lotte Reit 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 Lotte Reit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Lotte Reit.
Diversification Opportunities for SK Telecom and Lotte Reit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 017670 and Lotte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Lotte Reit Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Reit 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 Lotte Reit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Reit has no effect on the direction of SK Telecom i.e., SK Telecom and Lotte Reit go up and down completely randomly.
Pair Corralation between SK Telecom and Lotte Reit
If you would invest 4,665,744 in SK Telecom Co on September 14, 2024 and sell it today you would earn a total of 984,256 from holding SK Telecom Co or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SK Telecom Co vs. Lotte Reit Co
Performance |
| Timeline |
| SK Telecom |
| Lotte Reit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Telecom and Lotte Reit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Lotte Reit
The main advantage of trading using opposite SK Telecom and Lotte Reit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Lotte Reit 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 Lotte Reit will offset losses from the drop in Lotte Reit's long position.| SK Telecom vs. YG Entertainment | SK Telecom vs. JYP Entertainment | SK Telecom vs. Cube Entertainment | SK Telecom vs. FNC Entertainment Co |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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