Correlation Between SK Holdings and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both SK Holdings and Koryo Credit 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 Holdings and Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Holdings Co and Koryo Credit Information, you can compare the effects of market volatilities on SK Holdings and Koryo Credit 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 Holdings with a short position of Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Holdings and Koryo Credit.
Diversification Opportunities for SK Holdings and Koryo Credit
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 034730 and Koryo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SK Holdings Co and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information and SK Holdings 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 Holdings Co are associated (or correlated) with Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of SK Holdings i.e., SK Holdings and Koryo Credit go up and down completely randomly.
Pair Corralation between SK Holdings and Koryo Credit
Assuming the 90 days trading horizon SK Holdings Co is expected to generate 3.0 times more return on investment than Koryo Credit. However, SK Holdings is 3.0 times more volatile than Koryo Credit Information. It trades about 0.24 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.13 per unit of risk. If you would invest 13,370,000 in SK Holdings Co on October 21, 2024 and sell it today you would earn a total of 1,310,000 from holding SK Holdings Co or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Holdings Co vs. Koryo Credit Information
Performance |
| Timeline |
| SK Holdings |
| Koryo Credit Information |
SK Holdings and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Holdings and Koryo Credit
The main advantage of trading using opposite SK Holdings and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Holdings position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| SK Holdings vs. Hankook Furniture Co | SK Holdings vs. Homecast CoLtd | SK Holdings vs. Hansol Homedeco Co | SK Holdings vs. ABOV Semiconductor Co |
| Koryo Credit vs. LB Investment | Koryo Credit vs. Stic Investments | Koryo Credit vs. Woori Technology Investment | Koryo Credit vs. Korean Drug 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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