Correlation Between SK Telecom and Alvarion
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Alvarion 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 Alvarion 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 Alvarion, you can compare the effects of market volatilities on SK Telecom and Alvarion 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 Alvarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Alvarion.
Diversification Opportunities for SK Telecom and Alvarion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SKM and Alvarion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Alvarion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alvarion 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 Alvarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alvarion has no effect on the direction of SK Telecom i.e., SK Telecom and Alvarion go up and down completely randomly.
Pair Corralation between SK Telecom and Alvarion
If you would invest 2,377 in SK Telecom Co on August 30, 2024 and sell it today you would earn a total of 50.00 from holding SK Telecom Co or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
SK Telecom Co vs. Alvarion
Performance |
| Timeline |
| SK Telecom |
| Alvarion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Telecom and Alvarion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Alvarion
The main advantage of trading using opposite SK Telecom and Alvarion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Alvarion 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 Alvarion will offset losses from the drop in Alvarion's long position.| SK Telecom vs. TIM Participacoes SA | SK Telecom vs. PLDT Inc ADR | SK Telecom vs. Liberty Broadband Srs | SK Telecom vs. Liberty Broadband Srs |
| Alvarion vs. BOS Better Online | Alvarion vs. Mangazeya Mining | Alvarion vs. Entravision Communications | Alvarion vs. Boston Beer |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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