Correlation Between SK TELECOM and ALBIS LEASING

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Can any of the company-specific risk be diversified away by investing in both SK TELECOM and ALBIS LEASING 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 SK TELECOM and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK TELECOM TDADR and ALBIS LEASING AG, you can compare the effects of market volatilities on SK TELECOM and ALBIS LEASING 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 SK TELECOM with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK TELECOM and ALBIS LEASING.

Diversification Opportunities for SK TELECOM and ALBIS LEASING

0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between KMBA and ALBIS is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding SK TELECOM TDADR and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and SK TELECOM 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 SK TELECOM TDADR are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of SK TELECOM i.e., SK TELECOM and ALBIS LEASING go up and down completely randomly.

Pair Corralation between SK TELECOM and ALBIS LEASING

If you would invest  278.00  in ALBIS LEASING AG on December 3, 2024 and sell it today you would earn a total of  0.00  from holding ALBIS LEASING AG or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SK TELECOM TDADR  vs.  ALBIS LEASING AG

 Performance 
       Timeline  
SK TELECOM TDADR 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SK TELECOM TDADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
ALBIS LEASING AG 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ALBIS LEASING AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ALBIS LEASING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SK TELECOM and ALBIS LEASING Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SK TELECOM and ALBIS LEASING

The main advantage of trading using opposite SK TELECOM and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK TELECOM position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.
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The idea behind SK TELECOM TDADR and ALBIS LEASING AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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