Correlation Between CTS Eventim and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both CTS Eventim 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 CTS Eventim and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTS Eventim AG and SK TELECOM TDADR, you can compare the effects of market volatilities on CTS Eventim 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 CTS Eventim with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTS Eventim and SK TELECOM.
Diversification Opportunities for CTS Eventim and SK TELECOM
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTS and KMBA is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CTS Eventim AG 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 CTS Eventim 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 CTS Eventim AG 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 CTS Eventim i.e., CTS Eventim and SK TELECOM go up and down completely randomly.
Pair Corralation between CTS Eventim and SK TELECOM
Assuming the 90 days trading horizon CTS Eventim AG is expected to under-perform the SK TELECOM. But the stock apears to be less risky and, when comparing its historical volatility, CTS Eventim AG is 1.11 times less risky than SK TELECOM. The stock trades about -0.14 of its potential returns per unit of risk. The SK TELECOM TDADR is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,920 in SK TELECOM TDADR on September 5, 2024 and sell it today you would earn a total of 320.00 from holding SK TELECOM TDADR or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CTS Eventim AG vs. SK TELECOM TDADR
Performance |
| Timeline |
| CTS Eventim AG |
| SK TELECOM TDADR |
CTS Eventim and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTS Eventim and SK TELECOM
The main advantage of trading using opposite CTS Eventim and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTS Eventim 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.| CTS Eventim vs. SK TELECOM TDADR | CTS Eventim vs. Ribbon Communications | CTS Eventim vs. American Homes 4 | CTS Eventim vs. Consolidated Communications Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |