Correlation Between SK TELECOM and Keck Seng
Can any of the company-specific risk be diversified away by investing in both SK TELECOM and Keck Seng 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 Keck Seng 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 Keck Seng Investments, you can compare the effects of market volatilities on SK TELECOM and Keck Seng 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 Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK TELECOM and Keck Seng.
Diversification Opportunities for SK TELECOM and Keck Seng
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between KMBA and Keck is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SK TELECOM TDADR and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments 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 Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of SK TELECOM i.e., SK TELECOM and Keck Seng go up and down completely randomly.
Pair Corralation between SK TELECOM and Keck Seng
Assuming the 90 days trading horizon SK TELECOM TDADR is expected to generate 0.53 times more return on investment than Keck Seng. However, SK TELECOM TDADR is 1.87 times less risky than Keck Seng. It trades about 0.02 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.01 per unit of risk. If you would invest 1,970 in SK TELECOM TDADR on October 30, 2024 and sell it today you would earn a total of 20.00 from holding SK TELECOM TDADR or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK TELECOM TDADR vs. Keck Seng Investments
Performance |
| Timeline |
| SK TELECOM TDADR |
| Keck Seng Investments |
SK TELECOM and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK TELECOM and Keck Seng
The main advantage of trading using opposite SK TELECOM and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK TELECOM position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| SK TELECOM vs. Infrastrutture Wireless Italiane | SK TELECOM vs. Major Drilling Group | SK TELECOM vs. PICKN PAY STORES | SK TELECOM vs. COSTCO WHOLESALE CDR |
| Keck Seng vs. DETALION GAMES SA | Keck Seng vs. TEN SQUARE GAMES | Keck Seng vs. Media and Games | Keck Seng vs. American Public Education |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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