Correlation Between Xavis and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Xavis 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 Xavis and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xavis Co and SK Telecom Co, you can compare the effects of market volatilities on Xavis 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 Xavis with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xavis and SK Telecom.
Diversification Opportunities for Xavis and SK Telecom
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xavis and 017670 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xavis 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 Xavis 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 Xavis 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 Xavis i.e., Xavis and SK Telecom go up and down completely randomly.
Pair Corralation between Xavis and SK Telecom
Assuming the 90 days trading horizon Xavis Co is expected to under-perform the SK Telecom. In addition to that, Xavis is 3.59 times more volatile than SK Telecom Co. It trades about -0.04 of its total potential returns per unit of risk. SK Telecom Co is currently generating about 0.07 per unit of volatility. If you would invest 4,263,282 in SK Telecom Co on October 24, 2024 and sell it today you would earn a total of 1,226,718 from holding SK Telecom Co or generate 28.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xavis Co vs. SK Telecom Co
Performance |
| Timeline |
| Xavis |
| SK Telecom |
Xavis and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xavis and SK Telecom
The main advantage of trading using opposite Xavis and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xavis 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.| Xavis vs. KakaoBank Corp | Xavis vs. Dgb Financial | Xavis vs. Koryo Credit Information | Xavis vs. Korean Drug Co |
| SK Telecom vs. Ssangyong Materials Corp | SK Telecom vs. Daiyang Metal Co | SK Telecom vs. LAKE MATERIALS LTD | SK Telecom vs. RF Materials 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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