Correlation Between SK Telecom and Radius Global
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Radius 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 Radius 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 Radius Global Infrastructure, you can compare the effects of market volatilities on SK Telecom and Radius 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 Radius Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Radius Global.
Diversification Opportunities for SK Telecom and Radius Global
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SKM and Radius is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Radius Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radius Global Infras 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 Radius Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radius Global Infras has no effect on the direction of SK Telecom i.e., SK Telecom and Radius Global go up and down completely randomly.
Pair Corralation between SK Telecom and Radius Global
If you would invest 2,117 in SK Telecom Co on November 3, 2024 and sell it today you would earn a total of 16.00 from holding SK Telecom Co or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SK Telecom Co vs. Radius Global Infrastructure
Performance |
| Timeline |
| SK Telecom |
| Radius Global Infras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Telecom and Radius Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Radius Global
The main advantage of trading using opposite SK Telecom and Radius Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Radius 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 Radius Global will offset losses from the drop in Radius 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 |
| Radius Global vs. Access Power Co | Radius Global vs. PLDT Inc ADR | Radius Global vs. ATN International | Radius Global vs. KT Corporation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |