Correlation Between 24SEVENOFFICE GROUP and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and SK TELECOM TDADR, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and SK TELECOM.
Diversification Opportunities for 24SEVENOFFICE GROUP and SK TELECOM
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 24SEVENOFFICE and KMBA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 TDADR has no effect on the direction of 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and SK TELECOM go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and SK TELECOM
Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to under-perform the SK TELECOM. But the stock apears to be less risky and, when comparing its historical volatility, 24SEVENOFFICE GROUP AB is 4.38 times less risky than SK TELECOM. The stock trades about -0.11 of its potential returns per unit of risk. The SK TELECOM TDADR is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,970 in SK TELECOM TDADR on September 1, 2024 and sell it today you would earn a total of 290.00 from holding SK TELECOM TDADR or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. SK TELECOM TDADR
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| SK TELECOM TDADR |
24SEVENOFFICE GROUP and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and SK TELECOM
The main advantage of trading using opposite 24SEVENOFFICE GROUP and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. SAP SE | 24SEVENOFFICE GROUP vs. Superior Plus Corp | 24SEVENOFFICE GROUP vs. NMI Holdings | 24SEVENOFFICE GROUP vs. Origin Agritech |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |