Correlation Between SK Telecom and Zoom Video
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Zoom Video 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 Zoom Video 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 Zoom Video Communications, you can compare the effects of market volatilities on SK Telecom and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Zoom Video.
Diversification Opportunities for SK Telecom and Zoom Video
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between S1KM34 and Zoom is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co, and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of SK Telecom i.e., SK Telecom and Zoom Video go up and down completely randomly.
Pair Corralation between SK Telecom and Zoom Video
Assuming the 90 days trading horizon SK Telecom Co, is expected to generate 0.88 times more return on investment than Zoom Video. However, SK Telecom Co, is 1.14 times less risky than Zoom Video. It trades about -0.12 of its potential returns per unit of risk. Zoom Video Communications is currently generating about -0.17 per unit of risk. If you would invest 3,315 in SK Telecom Co, on October 14, 2024 and sell it today you would lose (97.00) from holding SK Telecom Co, or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co, vs. Zoom Video Communications
Performance |
| Timeline |
| SK Telecom Co, |
| Zoom Video Communications |
SK Telecom and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Zoom Video
The main advantage of trading using opposite SK Telecom and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| SK Telecom vs. Paycom Software | SK Telecom vs. Charter Communications | SK Telecom vs. NXP Semiconductors NV | SK Telecom vs. Bemobi Mobile Tech |
| Zoom Video vs. Check Point Software | Zoom Video vs. JB Hunt Transport | Zoom Video vs. Mangels Industrial SA | Zoom Video vs. METISA Metalrgica Timboense |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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