Correlation Between SK TELECOM and KERINGUNSPADR 1/10
Can any of the company-specific risk be diversified away by investing in both SK TELECOM and KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 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 KERINGUNSPADR 110 EO, you can compare the effects of market volatilities on SK TELECOM and KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK TELECOM and KERINGUNSPADR 1/10.
Diversification Opportunities for SK TELECOM and KERINGUNSPADR 1/10
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between KMBA and KERINGUNSPADR is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding SK TELECOM TDADR and KERINGUNSPADR 110 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERINGUNSPADR 1/10 has no effect on the direction of SK TELECOM i.e., SK TELECOM and KERINGUNSPADR 1/10 go up and down completely randomly.
Pair Corralation between SK TELECOM and KERINGUNSPADR 1/10
Assuming the 90 days trading horizon SK TELECOM TDADR is expected to generate 0.65 times more return on investment than KERINGUNSPADR 1/10. However, SK TELECOM TDADR is 1.54 times less risky than KERINGUNSPADR 1/10. It trades about 0.02 of its potential returns per unit of risk. KERINGUNSPADR 110 EO is currently generating about -0.04 per unit of risk. If you would invest 1,874 in SK TELECOM TDADR on October 16, 2024 and sell it today you would earn a total of 146.00 from holding SK TELECOM TDADR or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.01% |
| Values | Daily Returns |
SK TELECOM TDADR vs. KERINGUNSPADR 110 EO
Performance |
| Timeline |
| SK TELECOM TDADR |
| KERINGUNSPADR 1/10 |
SK TELECOM and KERINGUNSPADR 1/10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK TELECOM and KERINGUNSPADR 1/10
The main advantage of trading using opposite SK TELECOM and KERINGUNSPADR 1/10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK TELECOM position performs unexpectedly, KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 will offset losses from the drop in KERINGUNSPADR 1/10's long position.| SK TELECOM vs. Summit Materials | SK TELECOM vs. Goodyear Tire Rubber | SK TELECOM vs. The Yokohama Rubber | SK TELECOM vs. Applied Materials |
| KERINGUNSPADR 1/10 vs. Zoom Video Communications | KERINGUNSPADR 1/10 vs. Major Drilling Group | KERINGUNSPADR 1/10 vs. SK TELECOM TDADR | KERINGUNSPADR 1/10 vs. Hemisphere Energy Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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