Correlation Between SK Telecom and Asia Global
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Asia Global 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 Asia Global 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 Asia Global Crossing, you can compare the effects of market volatilities on SK Telecom and Asia Global 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 Asia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Asia Global.
Diversification Opportunities for SK Telecom and Asia Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SKM and Asia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Asia Global Crossing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Global Crossing 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 Asia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Global Crossing has no effect on the direction of SK Telecom i.e., SK Telecom and Asia Global go up and down completely randomly.
Pair Corralation between SK Telecom and Asia Global
If you would invest 2,280 in SK Telecom Co on August 30, 2024 and sell it today you would earn a total of 147.00 from holding SK Telecom Co or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
SK Telecom Co vs. Asia Global Crossing
Performance |
| Timeline |
| SK Telecom |
| Asia Global Crossing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Telecom and Asia Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Asia Global
The main advantage of trading using opposite SK Telecom and Asia Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Asia Global 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 Asia Global will offset losses from the drop in Asia Global'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 |
| Asia Global vs. BCE Inc | Asia Global vs. Advanced Info Service | Asia Global vs. American Nortel Communications | Asia Global vs. Axiologix |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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