Correlation Between Nable Communications and SK Holdings
Can any of the company-specific risk be diversified away by investing in both Nable Communications 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 Nable Communications and SK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nable Communications and SK Holdings Co, you can compare the effects of market volatilities on Nable Communications 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 Nable Communications with a short position of SK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nable Communications and SK Holdings.
Diversification Opportunities for Nable Communications and SK Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nable and 034730 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nable Communications and SK Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Holdings and Nable Communications 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 Nable Communications 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 Nable Communications i.e., Nable Communications and SK Holdings go up and down completely randomly.
Pair Corralation between Nable Communications and SK Holdings
Assuming the 90 days trading horizon Nable Communications is expected to under-perform the SK Holdings. In addition to that, Nable Communications is 1.13 times more volatile than SK Holdings Co. It trades about -0.12 of its total potential returns per unit of risk. SK Holdings Co is currently generating about 0.21 per unit of volatility. If you would invest 14,090,000 in SK Holdings Co on November 7, 2024 and sell it today you would earn a total of 720,000 from holding SK Holdings Co or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nable Communications vs. SK Holdings Co
Performance |
| Timeline |
| Nable Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| SK Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nable Communications and SK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nable Communications and SK Holdings
The main advantage of trading using opposite Nable Communications and SK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nable Communications 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.| Nable Communications vs. Heungkuk Metaltech CoLtd | Nable Communications vs. Ilji Technology Co | Nable Communications vs. AeroSpace Technology of | Nable Communications vs. Puloon Technology |
| SK Holdings vs. Koh Young Technology | SK Holdings vs. Hana Financial | SK Holdings vs. Samsung Securities |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |