Correlation Between Wireless Power and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Wireless Power 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 Wireless Power and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and SK Telecom Co, you can compare the effects of market volatilities on Wireless Power 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 Wireless Power with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and SK Telecom.
Diversification Opportunities for Wireless Power and SK Telecom
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wireless and 017670 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and Wireless Power 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 Wireless Power Amplifier 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 Wireless Power i.e., Wireless Power and SK Telecom go up and down completely randomly.
Pair Corralation between Wireless Power and SK Telecom
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 3.24 times more return on investment than SK Telecom. However, Wireless Power is 3.24 times more volatile than SK Telecom Co. It trades about 0.15 of its potential returns per unit of risk. SK Telecom Co is currently generating about -0.03 per unit of risk. If you would invest 271,000 in Wireless Power Amplifier on October 24, 2024 and sell it today you would earn a total of 146,000 from holding Wireless Power Amplifier or generate 53.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. SK Telecom Co
Performance |
| Timeline |
| Wireless Power Amplifier |
| SK Telecom |
Wireless Power and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and SK Telecom
The main advantage of trading using opposite Wireless Power and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power 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.| Wireless Power vs. E Investment Development | Wireless Power vs. Daiyang Metal Co | Wireless Power vs. Pureun Mutual Savings | Wireless Power vs. SBI Investment KOREA |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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