Correlation Between SK Telecom and Cable One
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on SK Telecom and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Cable One.
Diversification Opportunities for SK Telecom and Cable One
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SKM and Cable is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of SK Telecom i.e., SK Telecom and Cable One go up and down completely randomly.
Pair Corralation between SK Telecom and Cable One
Considering the 90-day investment horizon SK Telecom Co is expected to generate 0.48 times more return on investment than Cable One. However, SK Telecom Co is 2.09 times less risky than Cable One. It trades about 0.04 of its potential returns per unit of risk. Cable One is currently generating about -0.03 per unit of risk. If you would invest 1,872 in SK Telecom Co on August 27, 2024 and sell it today you would earn a total of 406.00 from holding SK Telecom Co or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. Cable One
Performance |
| Timeline |
| SK Telecom |
| Cable One |
SK Telecom and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Cable One
The main advantage of trading using opposite SK Telecom and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| SK Telecom vs. Anterix | SK Telecom vs. Liberty Broadband Corp | SK Telecom vs. Ooma Inc | SK Telecom vs. IDT Corporation |
| Cable One vs. Liberty Global PLC | Cable One vs. Liberty Global PLC | Cable One vs. Liberty Broadband Srs | Cable One vs. Shenandoah Telecommunications Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |