Correlation Between SK TELECOM and INTERSHOP Communications
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By analyzing existing cross correlation between SK TELECOM TDADR and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on SK TELECOM and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK TELECOM and INTERSHOP Communications.
Diversification Opportunities for SK TELECOM and INTERSHOP Communications
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KMBA and INTERSHOP is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SK TELECOM TDADR and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of SK TELECOM i.e., SK TELECOM and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between SK TELECOM and INTERSHOP Communications
Assuming the 90 days trading horizon SK TELECOM is expected to generate 3.14 times less return on investment than INTERSHOP Communications. But when comparing it to its historical volatility, SK TELECOM TDADR is 1.66 times less risky than INTERSHOP Communications. It trades about 0.02 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 160.00 in INTERSHOP Communications Aktiengesellschaft on August 29, 2024 and sell it today you would earn a total of 33.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
SK TELECOM TDADR vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| SK TELECOM TDADR |
| INTERSHOP Communications |
SK TELECOM and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK TELECOM and INTERSHOP Communications
The main advantage of trading using opposite SK TELECOM and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK TELECOM position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.The idea behind SK TELECOM TDADR and INTERSHOP Communications Aktiengesellschaft 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.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. Fastly Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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