Correlation Between Kyung In and Pan Entertainment
Can any of the company-specific risk be diversified away by investing in both Kyung In and Pan 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 Kyung In and Pan Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyung In Synthetic Corp and Pan Entertainment Co, you can compare the effects of market volatilities on Kyung In and Pan 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 Kyung In with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyung In and Pan Entertainment.
Diversification Opportunities for Kyung In and Pan Entertainment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kyung and Pan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kyung In Synthetic Corp and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and Kyung In 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 Kyung In Synthetic Corp are associated (or correlated) with Pan Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Entertainment has no effect on the direction of Kyung In i.e., Kyung In and Pan Entertainment go up and down completely randomly.
Pair Corralation between Kyung In and Pan Entertainment
Assuming the 90 days trading horizon Kyung In Synthetic Corp is expected to generate 1.24 times more return on investment than Pan Entertainment. However, Kyung In is 1.24 times more volatile than Pan Entertainment Co. It trades about -0.12 of its potential returns per unit of risk. Pan Entertainment Co is currently generating about -0.21 per unit of risk. If you would invest 298,000 in Kyung In Synthetic Corp on August 29, 2024 and sell it today you would lose (13,000) from holding Kyung In Synthetic Corp or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyung In Synthetic Corp vs. Pan Entertainment Co
Performance |
| Timeline |
| Kyung In Synthetic |
| Pan Entertainment |
Kyung In and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyung In and Pan Entertainment
The main advantage of trading using opposite Kyung In and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyung In position performs unexpectedly, Pan 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 Pan Entertainment will offset losses from the drop in Pan Entertainment's long position.| Kyung In vs. Korean Reinsurance Co | Kyung In vs. Lotte Non Life Insurance | Kyung In vs. Hyosung Advanced Materials | Kyung In vs. DB Financial Investment |
| Pan Entertainment vs. AfreecaTV Co | Pan Entertainment vs. SS TECH | Pan Entertainment vs. Busan Industrial Co | Pan Entertainment vs. Busan Ind |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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