Correlation Between SK Telecom and Orange SA
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Orange SA 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 Orange SA 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 Orange SA ADR, you can compare the effects of market volatilities on SK Telecom and Orange SA 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 Orange SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Orange SA.
Diversification Opportunities for SK Telecom and Orange SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SKM and Orange is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Orange SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orange SA ADR 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 Orange SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orange SA ADR has no effect on the direction of SK Telecom i.e., SK Telecom and Orange SA go up and down completely randomly.
Pair Corralation between SK Telecom and Orange SA
If you would invest 2,138 in SK Telecom Co on November 18, 2024 and sell it today you would earn a total of 48.00 from holding SK Telecom Co or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SK Telecom Co vs. Orange SA ADR
Performance |
| Timeline |
| SK Telecom |
| Orange SA ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SK Telecom and Orange SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Orange SA
The main advantage of trading using opposite SK Telecom and Orange SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Orange SA 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 Orange SA will offset losses from the drop in Orange SA'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 |
| Orange SA vs. Telefonica Brasil SA | Orange SA vs. Vodafone Group PLC | Orange SA vs. Grupo Televisa SAB | Orange SA vs. America Movil SAB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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