Correlation Between Technology Telecommunicatio and SK GROWTH
Can any of the company-specific risk be diversified away by investing in both Technology Telecommunicatio and SK GROWTH 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 Technology Telecommunicatio and SK GROWTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technology Telecommunication Acquisition and SK GROWTH OPPORTUNITIES, you can compare the effects of market volatilities on Technology Telecommunicatio and SK GROWTH 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 Technology Telecommunicatio with a short position of SK GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology Telecommunicatio and SK GROWTH.
Diversification Opportunities for Technology Telecommunicatio and SK GROWTH
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Technology and SKGRU is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Technology Telecommunication A and SK GROWTH OPPORTUNITIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK GROWTH OPPORTUNITIES and Technology Telecommunicatio 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 Technology Telecommunication Acquisition are associated (or correlated) with SK GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK GROWTH OPPORTUNITIES has no effect on the direction of Technology Telecommunicatio i.e., Technology Telecommunicatio and SK GROWTH go up and down completely randomly.
Pair Corralation between Technology Telecommunicatio and SK GROWTH
Assuming the 90 days horizon Technology Telecommunicatio is expected to generate 1041.66 times less return on investment than SK GROWTH. But when comparing it to its historical volatility, Technology Telecommunication Acquisition is 197.73 times less risky than SK GROWTH. It trades about 0.03 of its potential returns per unit of risk. SK GROWTH OPPORTUNITIES is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,030 in SK GROWTH OPPORTUNITIES on September 3, 2024 and sell it today you would earn a total of 112.00 from holding SK GROWTH OPPORTUNITIES or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.11% |
| Values | Daily Returns |
Technology Telecommunication A vs. SK GROWTH OPPORTUNITIES
Performance |
| Timeline |
| Technology Telecommunicatio |
| SK GROWTH OPPORTUNITIES |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Technology Telecommunicatio and SK GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technology Telecommunicatio and SK GROWTH
The main advantage of trading using opposite Technology Telecommunicatio and SK GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Telecommunicatio position performs unexpectedly, SK GROWTH 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 SK GROWTH will offset losses from the drop in SK GROWTH's long position.| Technology Telecommunicatio vs. Alpha One | Technology Telecommunicatio vs. Manaris Corp | Technology Telecommunicatio vs. SCOR PK | Technology Telecommunicatio vs. Aquagold International |
| SK GROWTH vs. Alpha One | SK GROWTH vs. Manaris Corp | SK GROWTH vs. SCOR PK | SK GROWTH vs. Aquagold International |
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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