Correlation Between Multilaser Industrial and SK Telecom

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

By analyzing existing cross correlation between Multilaser Industrial SA and SK Telecom Co,, you can compare the effects of market volatilities on Multilaser Industrial 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 Multilaser Industrial with a short position of SK Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multilaser Industrial and SK Telecom.

Diversification Opportunities for Multilaser Industrial and SK Telecom

0.0

Correlation Coefficient

Multilaser Industrial  SK Telecom

Pay attention - limited upside

The 3 months correlation between Multilaser and S1KM34 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multilaser Industrial SA and SK Telecom Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Telecom Co, and Multilaser Industrial 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 Multilaser Industrial SA 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 Co, has no effect on the direction of Multilaser Industrial i.e., Multilaser Industrial and SK Telecom go up and down completely randomly.

Pair Corralation between Multilaser Industrial and SK Telecom

If you would invest  0.00  in SK Telecom Co, on October 4, 2024 and sell it today you would earn a total of  0.00  from holding SK Telecom Co, or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Multilaser Industrial SA  vs.  SK Telecom Co,

Multilaser Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multilaser Industrial SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Multilaser Industrial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SK Telecom Co,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SK Telecom Co, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, SK Telecom is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multilaser Industrial and SK Telecom

The main advantage of trading using opposite Multilaser Industrial and SK Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multilaser Industrial 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 Multilaser Industrial SA and SK Telecom Co, 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.