Correlation Between Comcast Corp and SK Telecom
Can any of the company-specific risk be diversified away by investing in both Comcast Corp 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 Comcast Corp and SK Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and SK Telecom Co, you can compare the effects of market volatilities on Comcast Corp 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 Comcast Corp with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and SK Telecom.
Diversification Opportunities for Comcast Corp and SK Telecom
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Comcast and SKM is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and SK Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom and Comcast Corp 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 Comcast Corp 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 Comcast Corp i.e., Comcast Corp and SK Telecom go up and down completely randomly.
Pair Corralation between Comcast Corp and SK Telecom
Assuming the 90 days horizon Comcast Corp is expected to generate 5.2 times less return on investment than SK Telecom. In addition to that, Comcast Corp is 1.18 times more volatile than SK Telecom Co. It trades about 0.01 of its total potential returns per unit of risk. SK Telecom Co is currently generating about 0.06 per unit of volatility. If you would invest 1,865 in SK Telecom Co on August 27, 2024 and sell it today you would earn a total of 413.00 from holding SK Telecom Co or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. SK Telecom Co
Performance |
| Timeline |
| Comcast Corp |
| SK Telecom |
Comcast Corp and SK Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and SK Telecom
The main advantage of trading using opposite Comcast Corp and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp 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.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
| SK Telecom vs. Anterix | SK Telecom vs. Liberty Broadband Corp | SK Telecom vs. Ooma Inc | SK Telecom vs. IDT Corporation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |