Correlation Between Delta Electronics and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both Delta Electronics 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 Delta Electronics and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics Public and SK TELECOM TDADR, you can compare the effects of market volatilities on Delta Electronics 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 Delta Electronics with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and SK TELECOM.
Diversification Opportunities for Delta Electronics and SK TELECOM
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delta and KMBA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public 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 Delta Electronics 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 Delta Electronics Public 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 Delta Electronics i.e., Delta Electronics and SK TELECOM go up and down completely randomly.
Pair Corralation between Delta Electronics and SK TELECOM
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 1.55 times more return on investment than SK TELECOM. However, Delta Electronics is 1.55 times more volatile than SK TELECOM TDADR. It trades about 0.18 of its potential returns per unit of risk. SK TELECOM TDADR is currently generating about 0.04 per unit of risk. If you would invest 192.00 in Delta Electronics Public on October 13, 2024 and sell it today you would earn a total of 228.00 from holding Delta Electronics Public or generate 118.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. SK TELECOM TDADR
Performance |
| Timeline |
| Delta Electronics Public |
| SK TELECOM TDADR |
Delta Electronics and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and SK TELECOM
The main advantage of trading using opposite Delta Electronics and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics 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.| Delta Electronics vs. Treasury Wine Estates | Delta Electronics vs. COMPUTERSHARE | Delta Electronics vs. Cleanaway Waste Management | Delta Electronics vs. VIRGIN WINES UK |
| SK TELECOM vs. ALTAIR RES INC | SK TELECOM vs. Ryanair Holdings plc | SK TELECOM vs. Major Drilling Group | SK TELECOM vs. Micron Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |