Correlation Between SK Telecom and MCBC Holdings
Can any of the company-specific risk be diversified away by investing in both SK Telecom and MCBC Holdings 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 MCBC Holdings 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 MCBC Holdings, you can compare the effects of market volatilities on SK Telecom and MCBC Holdings 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 MCBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Telecom and MCBC Holdings.
Diversification Opportunities for SK Telecom and MCBC Holdings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SKM and MCBC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SK Telecom Co and MCBC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBC Holdings 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 MCBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBC Holdings has no effect on the direction of SK Telecom i.e., SK Telecom and MCBC Holdings go up and down completely randomly.
Pair Corralation between SK Telecom and MCBC Holdings
Considering the 90-day investment horizon SK Telecom Co is expected to generate 0.39 times more return on investment than MCBC Holdings. However, SK Telecom Co is 2.57 times less risky than MCBC Holdings. It trades about -0.13 of its potential returns per unit of risk. MCBC Holdings is currently generating about -0.1 per unit of risk. If you would invest 2,188 in SK Telecom Co on September 13, 2025 and sell it today you would lose (172.00) from holding SK Telecom Co or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Telecom Co vs. MCBC Holdings
Performance |
| Timeline |
| SK Telecom |
| MCBC Holdings |
SK Telecom and MCBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Telecom and MCBC Holdings
The main advantage of trading using opposite SK Telecom and MCBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Telecom position performs unexpectedly, MCBC Holdings 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 MCBC Holdings will offset losses from the drop in MCBC Holdings' long position.| SK Telecom vs. KDDI Corp PK | SK Telecom vs. Singapore Telecommunications PK | SK Telecom vs. SwissCom AG | SK Telecom vs. Telstra Limited |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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