Correlation Between Lotte Reit and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Lotte Reit 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 Lotte Reit and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Reit Co and SK Telecom Co, you can compare the effects of market volatilities on Lotte Reit 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 Lotte Reit with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Reit and SK Telecom.
Diversification Opportunities for Lotte Reit and SK Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotte and 017670 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Reit 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 Lotte Reit 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 Lotte Reit 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 Lotte Reit i.e., Lotte Reit and SK Telecom go up and down completely randomly.
Pair Corralation between Lotte Reit and SK Telecom
If you would invest 5,488,802 in SK Telecom Co on December 4, 2024 and sell it today you would earn a total of 111,198 from holding SK Telecom Co or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lotte Reit Co vs. SK Telecom Co
Performance |
| Timeline |
| Lotte Reit |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SK Telecom |
Lotte Reit and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Reit and SK Telecom
The main advantage of trading using opposite Lotte Reit and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Reit 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.| Lotte Reit vs. Industrial Bank | Lotte Reit vs. Kyeryong Construction Industrial | Lotte Reit vs. SEOJEON ELECTRIC MACHINERY | Lotte Reit vs. LEENO Industrial |
| SK Telecom vs. E Investment Development | SK Telecom vs. SK Chemicals Co | SK Telecom vs. Daol Investment Securities | SK Telecom vs. SBI Investment KOREA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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