Correlation Between SK Telecom and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both SK Telecom and STAG Industrial, 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 STAG Industrial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Telecom Co, and STAG Industrial,, you can compare the effects of market volatilities on SK Telecom and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and STAG Industrial,.
Diversification Opportunities for SK Telecom and STAG Industrial,
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between S1KM34 and STAG is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co, and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 Co, are associated (or correlated) with STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of SK Telecom i.e., SK Telecom and STAG Industrial, go up and down completely randomly.
Pair Corralation between SK Telecom and STAG Industrial,
Assuming the 90 days trading horizon SK Telecom Co, is expected to generate 0.81 times more return on investment than STAG Industrial,. However, SK Telecom Co, is 1.23 times less risky than STAG Industrial,. It trades about 0.04 of its potential returns per unit of risk. STAG Industrial, is currently generating about 0.03 per unit of risk. If you would invest 2,541 in SK Telecom Co, on October 16, 2024 and sell it today you would earn a total of 677.00 from holding SK Telecom Co, or generate 26.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SK Telecom Co, vs. STAG Industrial,
Performance |
| Timeline |
| SK Telecom Co, |
| STAG Industrial, |
SK Telecom and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and STAG Industrial,
The main advantage of trading using opposite SK Telecom and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| SK Telecom vs. Micron Technology | SK Telecom vs. Mangels Industrial SA | SK Telecom vs. Paycom Software | SK Telecom vs. Automatic Data Processing |
| STAG Industrial, vs. Capital One Financial | STAG Industrial, vs. Synchrony Financial | STAG Industrial, vs. Ameriprise Financial | STAG Industrial, vs. CM Hospitalar SA |
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 Stocks Directory module to find actively traded stocks across global markets.
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