Correlation Between Kisan Telecom and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and SK Telecom 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 Kisan Telecom and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and SK Telecom Co, you can compare the effects of market volatilities on Kisan Telecom and SK Telecom 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 Kisan Telecom with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and SK Telecom.
Diversification Opportunities for Kisan Telecom and SK Telecom
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kisan and 017670 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and Kisan 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 Kisan Telecom Co are associated (or correlated) with SK Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Telecom has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and SK Telecom go up and down completely randomly.
Pair Corralation between Kisan Telecom and SK Telecom
Assuming the 90 days trading horizon Kisan Telecom Co is expected to under-perform the SK Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Kisan Telecom Co is 1.01 times less risky than SK Telecom. The stock trades about -0.12 of its potential returns per unit of risk. The SK Telecom Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 5,730,000 in SK Telecom Co on August 28, 2024 and sell it today you would lose (50,000) from holding SK Telecom Co or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. SK Telecom Co
Performance |
| Timeline |
| Kisan Telecom |
| SK Telecom |
Kisan Telecom and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and SK Telecom
The main advantage of trading using opposite Kisan Telecom and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, SK Telecom 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 SK Telecom will offset losses from the drop in SK Telecom's long position.| Kisan Telecom vs. Digital Multimedia Technology | Kisan Telecom vs. Kaonmedia Co | Kisan Telecom vs. FNC Entertainment Co | Kisan Telecom vs. Innowireless Co |
| SK Telecom vs. AfreecaTV Co | SK Telecom vs. SS TECH | SK Telecom vs. Busan Industrial Co | SK Telecom vs. Busan Ind |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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