Correlation Between SK Telecom and Infinity Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SK Telecom and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals 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 Infinity Pharmaceuticals, you can compare the effects of market volatilities on SK Telecom and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and Infinity Pharmaceuticals.
Diversification Opportunities for SK Telecom and Infinity Pharmaceuticals
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SKM and Infinity is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and Infinity Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Pharmaceuticals has no effect on the direction of SK Telecom i.e., SK Telecom and Infinity Pharmaceuticals go up and down completely randomly.
Pair Corralation between SK Telecom and Infinity Pharmaceuticals
Considering the 90-day investment horizon SK Telecom Co is expected to generate 0.15 times more return on investment than Infinity Pharmaceuticals. However, SK Telecom Co is 6.74 times less risky than Infinity Pharmaceuticals. It trades about -0.01 of its potential returns per unit of risk. Infinity Pharmaceuticals is currently generating about -0.04 per unit of risk. If you would invest 2,278 in SK Telecom Co on January 18, 2024 and sell it today you would lose (281.00) from holding SK Telecom Co or give up 12.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.1% |
| Values | Daily Returns |
SK Telecom Co vs. Infinity Pharmaceuticals
Performance |
| Timeline |
| SK Telecom |
| Infinity Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SK Telecom and Infinity Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and Infinity Pharmaceuticals
The main advantage of trading using opposite SK Telecom and Infinity Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, Infinity Pharmaceuticals 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 Infinity Pharmaceuticals will offset losses from the drop in Infinity Pharmaceuticals' long position.| SK Telecom vs. Telefonica Brasil SA | SK Telecom vs. Orange SA ADR | SK Telecom vs. Grupo Televisa SAB | SK Telecom vs. Telefonica SA ADR |
| Infinity Pharmaceuticals vs. NextCure | Infinity Pharmaceuticals vs. Chimerix | Infinity Pharmaceuticals vs. Eledon Pharmaceuticals | Infinity Pharmaceuticals vs. CytomX Therapeutics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |