Correlation Between SK Telecom and Trade Desk
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Trade Desk 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 Trade Desk 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 The Trade Desk, you can compare the effects of market volatilities on SK Telecom and Trade Desk 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 Trade Desk. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Trade Desk.
Diversification Opportunities for SK Telecom and Trade Desk
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between S1KM34 and Trade is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co, and The Trade Desk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Desk 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 Trade Desk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Desk has no effect on the direction of SK Telecom i.e., SK Telecom and Trade Desk go up and down completely randomly.
Pair Corralation between SK Telecom and Trade Desk
Assuming the 90 days trading horizon SK Telecom Co, is expected to generate 0.57 times more return on investment than Trade Desk. However, SK Telecom Co, is 1.75 times less risky than Trade Desk. It trades about -0.12 of its potential returns per unit of risk. The Trade Desk is currently generating about -0.18 per unit of risk. If you would invest 3,321 in SK Telecom Co, on October 12, 2024 and sell it today you would lose (103.00) from holding SK Telecom Co, or give up 3.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co, vs. The Trade Desk
Performance |
| Timeline |
| SK Telecom Co, |
| Trade Desk |
SK Telecom and Trade Desk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Trade Desk
The main advantage of trading using opposite SK Telecom and Trade Desk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Trade Desk 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 Trade Desk will offset losses from the drop in Trade Desk's long position.| SK Telecom vs. Capital One Financial | SK Telecom vs. Discover Financial Services | SK Telecom vs. Ryanair Holdings plc | SK Telecom vs. Citizens Financial Group, |
| Trade Desk vs. Live Nation Entertainment, | Trade Desk vs. PENN Entertainment, | Trade Desk vs. SK Telecom Co, | Trade Desk vs. Zoom Video Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |