Correlation Between SK Telecom and Juniper
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Juniper 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 Juniper 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 Juniper Group, you can compare the effects of market volatilities on SK Telecom and Juniper 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 Juniper. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Juniper.
Diversification Opportunities for SK Telecom and Juniper
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SKM and Juniper is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Juniper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Group 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 Juniper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Group has no effect on the direction of SK Telecom i.e., SK Telecom and Juniper go up and down completely randomly.
Pair Corralation between SK Telecom and Juniper
Considering the 90-day investment horizon SK Telecom is expected to generate 1.08 times less return on investment than Juniper. In addition to that, SK Telecom is 3.72 times more volatile than Juniper Group. It trades about 0.04 of its total potential returns per unit of risk. Juniper Group is currently generating about 0.17 per unit of volatility. If you would invest 2,654 in Juniper Group on August 30, 2024 and sell it today you would earn a total of 70.00 from holding Juniper Group or generate 2.64% 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. Juniper Group
Performance |
| Timeline |
| SK Telecom |
| Juniper Group |
SK Telecom and Juniper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Juniper
The main advantage of trading using opposite SK Telecom and Juniper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Juniper 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 Juniper will offset losses from the drop in Juniper'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 |
| Juniper vs. FT Vest Equity | Juniper vs. Northern Lights | Juniper vs. Dimensional International High | Juniper vs. First Trust Exchange Traded |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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