Correlation Between Dongil Metal and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Dongil Metal 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 Dongil Metal and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and SK Telecom Co, you can compare the effects of market volatilities on Dongil Metal 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 Dongil Metal with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and SK Telecom.
Diversification Opportunities for Dongil Metal and SK Telecom
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dongil and 017670 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal 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 Dongil Metal 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 Dongil Metal 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 Dongil Metal i.e., Dongil Metal and SK Telecom go up and down completely randomly.
Pair Corralation between Dongil Metal and SK Telecom
Assuming the 90 days trading horizon Dongil Metal Co is expected to under-perform the SK Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Metal Co is 1.2 times less risky than SK Telecom. The stock trades about -0.11 of its potential returns per unit of risk. The SK Telecom Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,550,000 in SK Telecom Co on September 20, 2024 and sell it today you would earn a total of 210,000 from holding SK Telecom Co or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. SK Telecom Co
Performance |
| Timeline |
| Dongil Metal |
| SK Telecom |
Dongil Metal and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and SK Telecom
The main advantage of trading using opposite Dongil Metal and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal 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.| Dongil Metal vs. LG Chemicals | Dongil Metal vs. POSCO Holdings | Dongil Metal vs. Hanwha Solutions | Dongil Metal vs. Lotte Chemical Corp |
| SK Telecom vs. J Steel Co | SK Telecom vs. Samsung Publishing Co | SK Telecom vs. Cuckoo Electronics Co | SK Telecom vs. Dong A Steel Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |