Correlation Between Grand Korea and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Grand Korea 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 Grand Korea and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Korea Leisure and SK Telecom Co, you can compare the effects of market volatilities on Grand Korea 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 Grand Korea with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Korea and SK Telecom.
Diversification Opportunities for Grand Korea and SK Telecom
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grand and 017670 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grand Korea Leisure and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and Grand Korea 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 Grand Korea Leisure 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 Grand Korea i.e., Grand Korea and SK Telecom go up and down completely randomly.
Pair Corralation between Grand Korea and SK Telecom
Assuming the 90 days trading horizon Grand Korea Leisure is expected to generate 1.21 times more return on investment than SK Telecom. However, Grand Korea is 1.21 times more volatile than SK Telecom Co. It trades about 0.35 of its potential returns per unit of risk. SK Telecom Co is currently generating about -0.04 per unit of risk. If you would invest 1,104,000 in Grand Korea Leisure on October 30, 2024 and sell it today you would earn a total of 82,000 from holding Grand Korea Leisure or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Korea Leisure vs. SK Telecom Co
Performance |
| Timeline |
| Grand Korea Leisure |
| SK Telecom |
Grand Korea and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Korea and SK Telecom
The main advantage of trading using opposite Grand Korea and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Korea 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.| Grand Korea vs. Duksan Hi Metal | Grand Korea vs. Kbi Metal Co | Grand Korea vs. Inzi Display CoLtd | Grand Korea vs. Cuckoo Homesys Co |
| SK Telecom vs. Pyung Hwa Industrial | SK Telecom vs. DRB Industrial Co | SK Telecom vs. Formetal Co | SK Telecom vs. Daiyang Metal 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |