Correlation Between Korea Shipbuilding and FNC Entertainment
Can any of the company-specific risk be diversified away by investing in both Korea Shipbuilding and FNC Entertainment 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 Korea Shipbuilding and FNC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Shipbuilding Offshore and FNC Entertainment Co, you can compare the effects of market volatilities on Korea Shipbuilding and FNC Entertainment 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 Korea Shipbuilding with a short position of FNC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Shipbuilding and FNC Entertainment.
Diversification Opportunities for Korea Shipbuilding and FNC Entertainment
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and FNC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Korea Shipbuilding Offshore and FNC Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNC Entertainment and Korea Shipbuilding 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 Korea Shipbuilding Offshore are associated (or correlated) with FNC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNC Entertainment has no effect on the direction of Korea Shipbuilding i.e., Korea Shipbuilding and FNC Entertainment go up and down completely randomly.
Pair Corralation between Korea Shipbuilding and FNC Entertainment
Assuming the 90 days trading horizon Korea Shipbuilding Offshore is expected to generate 0.9 times more return on investment than FNC Entertainment. However, Korea Shipbuilding Offshore is 1.11 times less risky than FNC Entertainment. It trades about 0.22 of its potential returns per unit of risk. FNC Entertainment Co is currently generating about -0.14 per unit of risk. If you would invest 18,000,000 in Korea Shipbuilding Offshore on September 2, 2024 and sell it today you would earn a total of 2,450,000 from holding Korea Shipbuilding Offshore or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Shipbuilding Offshore vs. FNC Entertainment Co
Performance |
| Timeline |
| Korea Shipbuilding |
| FNC Entertainment |
Korea Shipbuilding and FNC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Shipbuilding and FNC Entertainment
The main advantage of trading using opposite Korea Shipbuilding and FNC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Shipbuilding position performs unexpectedly, FNC Entertainment 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 FNC Entertainment will offset losses from the drop in FNC Entertainment's long position.| Korea Shipbuilding vs. Korea New Network | Korea Shipbuilding vs. ICD Co | Korea Shipbuilding vs. DYPNF CoLtd | Korea Shipbuilding vs. Busan Industrial Co |
| FNC Entertainment vs. AfreecaTV Co | FNC Entertainment vs. Seegene | FNC Entertainment vs. SS TECH | FNC Entertainment vs. Busan Industrial Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |