Correlation Between SKONEC Entertainment and Sk Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and Sk Biopharmaceutica 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 SKONEC Entertainment and Sk Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and Sk Biopharmaceuticals Co, you can compare the effects of market volatilities on SKONEC Entertainment and Sk Biopharmaceutica 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 SKONEC Entertainment with a short position of Sk Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and Sk Biopharmaceutica.
Diversification Opportunities for SKONEC Entertainment and Sk Biopharmaceutica
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SKONEC and 326030 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and Sk Biopharmaceuticals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sk Biopharmaceuticals and SKONEC Entertainment 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 SKONEC Entertainment Co are associated (or correlated) with Sk Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sk Biopharmaceuticals has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and Sk Biopharmaceutica go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and Sk Biopharmaceutica
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to generate 1.6 times more return on investment than Sk Biopharmaceutica. However, SKONEC Entertainment is 1.6 times more volatile than Sk Biopharmaceuticals Co. It trades about 0.38 of its potential returns per unit of risk. Sk Biopharmaceuticals Co is currently generating about 0.1 per unit of risk. If you would invest 322,000 in SKONEC Entertainment Co on October 25, 2024 and sell it today you would earn a total of 103,500 from holding SKONEC Entertainment Co or generate 32.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. Sk Biopharmaceuticals Co
Performance |
| Timeline |
| SKONEC Entertainment |
| Sk Biopharmaceuticals |
SKONEC Entertainment and Sk Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and Sk Biopharmaceutica
The main advantage of trading using opposite SKONEC Entertainment and Sk Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, Sk Biopharmaceutica 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 Biopharmaceutica will offset losses from the drop in Sk Biopharmaceutica's long position.| SKONEC Entertainment vs. Busan Industrial Co | SKONEC Entertainment vs. Busan Ind | SKONEC Entertainment vs. RPBio Inc | SKONEC Entertainment vs. Finebesteel |
| Sk Biopharmaceutica vs. Ssangyong Materials Corp | Sk Biopharmaceutica vs. Daejung Chemicals Metals | Sk Biopharmaceutica vs. Hana Materials | Sk Biopharmaceutica vs. PI Advanced Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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