Correlation Between ATN International and SK Telecom
Can any of the company-specific risk be diversified away by investing in both ATN International 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 ATN International and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATN International and SK Telecom Co, you can compare the effects of market volatilities on ATN International 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 ATN International with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATN International and SK Telecom.
Diversification Opportunities for ATN International and SK Telecom
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATN and SKM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ATN International and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and ATN International 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 ATN International 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 ATN International i.e., ATN International and SK Telecom go up and down completely randomly.
Pair Corralation between ATN International and SK Telecom
Given the investment horizon of 90 days ATN International is expected to under-perform the SK Telecom. In addition to that, ATN International is 2.11 times more volatile than SK Telecom Co. It trades about -0.11 of its total potential returns per unit of risk. SK Telecom Co is currently generating about 0.04 per unit of volatility. If you would invest 2,117 in SK Telecom Co on November 3, 2024 and sell it today you would earn a total of 16.00 from holding SK Telecom Co or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATN International vs. SK Telecom Co
Performance |
| Timeline |
| ATN International |
| SK Telecom |
ATN International and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATN International and SK Telecom
The main advantage of trading using opposite ATN International and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATN International 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.| ATN International vs. KT Corporation | ATN International vs. SK Telecom Co | ATN International vs. Ooma Inc | ATN International vs. Liberty Broadband Srs |
| SK Telecom vs. TIM Participacoes SA | SK Telecom vs. PLDT Inc ADR | SK Telecom vs. Liberty Broadband Srs | SK Telecom vs. Liberty Broadband Srs |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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