Correlation Between Hurum and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Hurum 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 Hurum and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and SK Telecom Co, you can compare the effects of market volatilities on Hurum 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 Hurum with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and SK Telecom.
Diversification Opportunities for Hurum and SK Telecom
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hurum and 017670 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hurum 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 Hurum 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 Hurum 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 Hurum i.e., Hurum and SK Telecom go up and down completely randomly.
Pair Corralation between Hurum and SK Telecom
Assuming the 90 days trading horizon Hurum Co is expected to generate 1.49 times more return on investment than SK Telecom. However, Hurum is 1.49 times more volatile than SK Telecom Co. It trades about 0.27 of its potential returns per unit of risk. SK Telecom Co is currently generating about -0.17 per unit of risk. If you would invest 70,000 in Hurum Co on October 24, 2024 and sell it today you would earn a total of 5,400 from holding Hurum Co or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurum Co vs. SK Telecom Co
Performance |
| Timeline |
| Hurum |
| SK Telecom |
Hurum and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and SK Telecom
The main advantage of trading using opposite Hurum and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum 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.| Hurum vs. Tamul Multimedia Co | Hurum vs. Hanwha Life Insurance | Hurum vs. Daewon Media Co | Hurum vs. DC Media 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |