Correlation Between SK Telecom and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Grupo Supervielle 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 Grupo Supervielle 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 Grupo Supervielle SA, you can compare the effects of market volatilities on SK Telecom and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Grupo Supervielle.
Diversification Opportunities for SK Telecom and Grupo Supervielle
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SKM and Grupo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of SK Telecom i.e., SK Telecom and Grupo Supervielle go up and down completely randomly.
Pair Corralation between SK Telecom and Grupo Supervielle
Considering the 90-day investment horizon SK Telecom Co is expected to under-perform the Grupo Supervielle. But the stock apears to be less risky and, when comparing its historical volatility, SK Telecom Co is 5.35 times less risky than Grupo Supervielle. The stock trades about -0.62 of its potential returns per unit of risk. The Grupo Supervielle SA is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,139 in Grupo Supervielle SA on September 28, 2024 and sell it today you would earn a total of 413.00 from holding Grupo Supervielle SA or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. Grupo Supervielle SA
Performance |
| Timeline |
| SK Telecom |
| Grupo Supervielle |
SK Telecom and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Grupo Supervielle
The main advantage of trading using opposite SK Telecom and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| SK Telecom vs. Liberty Broadband Srs | SK Telecom vs. Liberty Broadband Srs | SK Telecom vs. Telefonica Brasil SA | SK Telecom 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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