Correlation Between Theragen Etex and SK Holdings
Can any of the company-specific risk be diversified away by investing in both Theragen Etex and SK Holdings 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 Theragen Etex and SK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Theragen Etex CoLtd and SK Holdings Co, you can compare the effects of market volatilities on Theragen Etex and SK Holdings 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 Theragen Etex with a short position of SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Theragen Etex and SK Holdings.
Diversification Opportunities for Theragen Etex and SK Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Theragen and 034730 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Theragen Etex CoLtd and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Holdings and Theragen Etex 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 Theragen Etex CoLtd are associated (or correlated) with SK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Holdings has no effect on the direction of Theragen Etex i.e., Theragen Etex and SK Holdings go up and down completely randomly.
Pair Corralation between Theragen Etex and SK Holdings
Assuming the 90 days trading horizon Theragen Etex CoLtd is expected to under-perform the SK Holdings. In addition to that, Theragen Etex is 1.04 times more volatile than SK Holdings Co. It trades about -0.02 of its total potential returns per unit of risk. SK Holdings Co is currently generating about 0.0 per unit of volatility. If you would invest 15,946,700 in SK Holdings Co on December 4, 2024 and sell it today you would lose (2,006,700) from holding SK Holdings Co or give up 12.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Theragen Etex CoLtd vs. SK Holdings Co
Performance |
| Timeline |
| Theragen Etex CoLtd |
| SK Holdings |
Theragen Etex and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Theragen Etex and SK Holdings
The main advantage of trading using opposite Theragen Etex and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theragen Etex position performs unexpectedly, SK Holdings 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 Holdings will offset losses from the drop in SK Holdings' long position.| Theragen Etex vs. YeaRimDang Publishing Co | Theragen Etex vs. Korea Information Engineering | Theragen Etex vs. Inzi Display CoLtd | Theragen Etex vs. SCI Information Service |
| SK Holdings vs. Foodnamoo | SK Holdings vs. Daishin Information Communications | SK Holdings vs. FOODWELL Co | SK Holdings vs. Ssangyong Information Communication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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