Correlation Between Playa Hotels and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both Playa Hotels 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 Playa Hotels and SK TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playa Hotels Resorts and SK TELECOM TDADR, you can compare the effects of market volatilities on Playa Hotels 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 Playa Hotels with a short position of SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and SK TELECOM.
Diversification Opportunities for Playa Hotels and SK TELECOM
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playa and KMBA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts 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 Playa Hotels 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 Playa Hotels Resorts 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 Playa Hotels i.e., Playa Hotels and SK TELECOM go up and down completely randomly.
Pair Corralation between Playa Hotels and SK TELECOM
Assuming the 90 days horizon Playa Hotels Resorts is expected to generate 0.84 times more return on investment than SK TELECOM. However, Playa Hotels Resorts is 1.19 times less risky than SK TELECOM. It trades about 0.07 of its potential returns per unit of risk. SK TELECOM TDADR is currently generating about -0.04 per unit of risk. If you would invest 1,160 in Playa Hotels Resorts on December 28, 2024 and sell it today you would earn a total of 60.00 from holding Playa Hotels Resorts or generate 5.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Playa Hotels Resorts vs. SK TELECOM TDADR
Performance |
Timeline |
Playa Hotels Resorts |
SK TELECOM TDADR |
Playa Hotels and SK TELECOM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Playa Hotels and SK TELECOM
The main advantage of trading using opposite Playa Hotels and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels 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.Playa Hotels vs. Southwest Airlines Co | Playa Hotels vs. American Airlines Group | Playa Hotels vs. Comba Telecom Systems | Playa Hotels vs. Cairo Communication SpA |
SK TELECOM vs. Caseys General Stores | SK TELECOM vs. MARKET VECTR RETAIL | SK TELECOM vs. MONEYSUPERMARKET | SK TELECOM vs. SENECA FOODS A |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |