Correlation Between KIWI Media and JYP Entertainment
Can any of the company-specific risk be diversified away by investing in both KIWI Media and JYP 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 KIWI Media and JYP Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIWI Media Group and JYP Entertainment Corp, you can compare the effects of market volatilities on KIWI Media and JYP 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 KIWI Media with a short position of JYP Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and JYP Entertainment.
Diversification Opportunities for KIWI Media and JYP Entertainment
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KIWI and JYP is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and JYP Entertainment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JYP Entertainment Corp and KIWI Media 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 KIWI Media Group are associated (or correlated) with JYP Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JYP Entertainment Corp has no effect on the direction of KIWI Media i.e., KIWI Media and JYP Entertainment go up and down completely randomly.
Pair Corralation between KIWI Media and JYP Entertainment
Assuming the 90 days trading horizon KIWI Media Group is expected to generate 1.99 times more return on investment than JYP Entertainment. However, KIWI Media is 1.99 times more volatile than JYP Entertainment Corp. It trades about 0.0 of its potential returns per unit of risk. JYP Entertainment Corp is currently generating about -0.01 per unit of risk. If you would invest 81,000 in KIWI Media Group on August 29, 2024 and sell it today you would lose (40,200) from holding KIWI Media Group or give up 49.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. JYP Entertainment Corp
Performance |
| Timeline |
| KIWI Media Group |
| JYP Entertainment Corp |
KIWI Media and JYP Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and JYP Entertainment
The main advantage of trading using opposite KIWI Media and JYP Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, JYP 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 JYP Entertainment will offset losses from the drop in JYP Entertainment's long position.| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
| JYP Entertainment vs. PH Tech Co | JYP Entertainment vs. A Tech Solution Co | JYP Entertainment vs. SS TECH | JYP Entertainment vs. Ecoplastic |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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