Correlation Between Seoul Broadcasting and LabGenomics
Can any of the company-specific risk be diversified away by investing in both Seoul Broadcasting and LabGenomics 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 Seoul Broadcasting and LabGenomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoul Broadcasting System and LabGenomics Co, you can compare the effects of market volatilities on Seoul Broadcasting and LabGenomics 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 Seoul Broadcasting with a short position of LabGenomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoul Broadcasting and LabGenomics.
Diversification Opportunities for Seoul Broadcasting and LabGenomics
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Seoul and LabGenomics is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Seoul Broadcasting System and LabGenomics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LabGenomics and Seoul Broadcasting 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 Seoul Broadcasting System are associated (or correlated) with LabGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LabGenomics has no effect on the direction of Seoul Broadcasting i.e., Seoul Broadcasting and LabGenomics go up and down completely randomly.
Pair Corralation between Seoul Broadcasting and LabGenomics
Assuming the 90 days trading horizon Seoul Broadcasting System is expected to generate 0.32 times more return on investment than LabGenomics. However, Seoul Broadcasting System is 3.17 times less risky than LabGenomics. It trades about 0.05 of its potential returns per unit of risk. LabGenomics Co is currently generating about -0.19 per unit of risk. If you would invest 1,515,000 in Seoul Broadcasting System on September 12, 2024 and sell it today you would earn a total of 16,000 from holding Seoul Broadcasting System or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoul Broadcasting System vs. LabGenomics Co
Performance |
| Timeline |
| Seoul Broadcasting System |
| LabGenomics |
Seoul Broadcasting and LabGenomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoul Broadcasting and LabGenomics
The main advantage of trading using opposite Seoul Broadcasting and LabGenomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoul Broadcasting position performs unexpectedly, LabGenomics 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 LabGenomics will offset losses from the drop in LabGenomics' long position.| Seoul Broadcasting vs. YG Entertainment | Seoul Broadcasting vs. JYP Entertainment | Seoul Broadcasting vs. Cube Entertainment | Seoul Broadcasting vs. FNC Entertainment Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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