Correlation Between FATFISH GROUP and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both FATFISH GROUP 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 FATFISH GROUP and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FATFISH GROUP LTD and SK TELECOM TDADR, you can compare the effects of market volatilities on FATFISH GROUP 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 FATFISH GROUP with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of FATFISH GROUP and SK TELECOM.
Diversification Opportunities for FATFISH GROUP and SK TELECOM
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FATFISH and KMBA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding FATFISH GROUP LTD and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR and FATFISH GROUP 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 FATFISH GROUP LTD 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 TDADR has no effect on the direction of FATFISH GROUP i.e., FATFISH GROUP and SK TELECOM go up and down completely randomly.
Pair Corralation between FATFISH GROUP and SK TELECOM
Assuming the 90 days horizon FATFISH GROUP LTD is expected to generate 4.07 times more return on investment than SK TELECOM. However, FATFISH GROUP is 4.07 times more volatile than SK TELECOM TDADR. It trades about 0.17 of its potential returns per unit of risk. SK TELECOM TDADR is currently generating about 0.02 per unit of risk. If you would invest 0.40 in FATFISH GROUP LTD on September 12, 2024 and sell it today you would earn a total of 0.15 from holding FATFISH GROUP LTD or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FATFISH GROUP LTD vs. SK TELECOM TDADR
Performance |
| Timeline |
| FATFISH GROUP LTD |
| SK TELECOM TDADR |
FATFISH GROUP and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FATFISH GROUP and SK TELECOM
The main advantage of trading using opposite FATFISH GROUP and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FATFISH GROUP 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.| FATFISH GROUP vs. Strategic Education | FATFISH GROUP vs. PKSHA TECHNOLOGY INC | FATFISH GROUP vs. Grand Canyon Education | FATFISH GROUP vs. Sunny Optical Technology |
| SK TELECOM vs. Coor Service Management | SK TELECOM vs. Corporate Travel Management | SK TELECOM vs. AOYAMA TRADING | SK TELECOM vs. CeoTronics AG |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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