Correlation Between DeviceENGCOLtd and SK Telecom
Can any of the company-specific risk be diversified away by investing in both DeviceENGCOLtd 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 DeviceENGCOLtd and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DeviceENGCOLtd and SK Telecom Co, you can compare the effects of market volatilities on DeviceENGCOLtd 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 DeviceENGCOLtd with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of DeviceENGCOLtd and SK Telecom.
Diversification Opportunities for DeviceENGCOLtd and SK Telecom
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between DeviceENGCOLtd and 017670 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding DeviceENGCOLtd and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and DeviceENGCOLtd 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 DeviceENGCOLtd 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 DeviceENGCOLtd i.e., DeviceENGCOLtd and SK Telecom go up and down completely randomly.
Pair Corralation between DeviceENGCOLtd and SK Telecom
Assuming the 90 days trading horizon DeviceENGCOLtd is expected to under-perform the SK Telecom. In addition to that, DeviceENGCOLtd is 1.55 times more volatile than SK Telecom Co. It trades about -0.09 of its total potential returns per unit of risk. SK Telecom Co is currently generating about 0.14 per unit of volatility. If you would invest 4,995,276 in SK Telecom Co on September 3, 2024 and sell it today you would earn a total of 1,144,724 from holding SK Telecom Co or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DeviceENGCOLtd vs. SK Telecom Co
Performance |
| Timeline |
| DeviceENGCOLtd |
| SK Telecom |
DeviceENGCOLtd and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DeviceENGCOLtd and SK Telecom
The main advantage of trading using opposite DeviceENGCOLtd and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DeviceENGCOLtd 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.| DeviceENGCOLtd vs. SK Telecom Co | DeviceENGCOLtd vs. Homecast CoLtd | DeviceENGCOLtd vs. Shin Steel Co | DeviceENGCOLtd vs. Hyundai Home Shopping |
| SK Telecom vs. Green Cross Medical | SK Telecom vs. LG Electronics Pfd | SK Telecom vs. Samji Electronics Co | SK Telecom vs. Anam Electronics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |