Correlation Between OURGAME INTHOLDL and SK TELECOM

Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL and SK TELECOM 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 OURGAME INTHOLDL and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and SK TELECOM TDADR, you can compare the effects of market volatilities on OURGAME INTHOLDL and SK TELECOM 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 OURGAME INTHOLDL with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and SK TELECOM.

Diversification Opportunities for OURGAME INTHOLDL and SK TELECOM

0.0

Correlation Coefficient

OURGAME INTHOLDL  SK TELECOM

Pay attention - limited upside

The 3 months correlation between OURGAME and KMBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR and OURGAME INTHOLDL 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 OURGAME INTHOLDL 00005 are associated (or correlated) with SK TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK TELECOM TDADR has no effect on the direction of OURGAME INTHOLDL i.e., OURGAME INTHOLDL and SK TELECOM go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL and SK TELECOM

If you would invest  1.60  in OURGAME INTHOLDL 00005 on December 29, 2024 and sell it today you would earn a total of  0.00  from holding OURGAME INTHOLDL 00005 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

OURGAME INTHOLDL 00005  vs.  SK TELECOM TDADR

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SK TELECOM TDADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days SK TELECOM TDADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, SK TELECOM is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with OURGAME INTHOLDL and SK TELECOM

The main advantage of trading using opposite OURGAME INTHOLDL and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL position performs unexpectedly, SK TELECOM 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 TELECOM will offset losses from the drop in SK TELECOM's long position.

The idea behind OURGAME INTHOLDL 00005 and SK TELECOM TDADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.