Correlation Between MEDIANA CoLtd and Pan Entertainment
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd 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 MEDIANA CoLtd and Pan Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Pan Entertainment Co, you can compare the effects of market volatilities on MEDIANA CoLtd 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 MEDIANA CoLtd with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Pan Entertainment.
Diversification Opportunities for MEDIANA CoLtd and Pan Entertainment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MEDIANA and Pan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and MEDIANA CoLtd 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 MEDIANA CoLtd 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 MEDIANA CoLtd i.e., MEDIANA CoLtd and Pan Entertainment go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Pan Entertainment
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 2.61 times more return on investment than Pan Entertainment. However, MEDIANA CoLtd is 2.61 times more volatile than Pan Entertainment Co. It trades about 0.1 of its potential returns per unit of risk. Pan Entertainment Co is currently generating about 0.09 per unit of risk. If you would invest 467,500 in MEDIANA CoLtd on August 31, 2024 and sell it today you would earn a total of 36,500 from holding MEDIANA CoLtd or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. Pan Entertainment Co
Performance |
| Timeline |
| MEDIANA CoLtd |
| Pan Entertainment |
MEDIANA CoLtd and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Pan Entertainment
The main advantage of trading using opposite MEDIANA CoLtd and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd 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.| MEDIANA CoLtd vs. AptaBio Therapeutics | MEDIANA CoLtd vs. KT Hitel | MEDIANA CoLtd vs. SillaJen | MEDIANA CoLtd vs. Cytogen |
| Pan Entertainment vs. Mgame Corp | Pan Entertainment vs. Sewoon Medical Co | Pan Entertainment vs. ENERGYMACHINERY KOREA CoLtd | Pan Entertainment vs. Korean Drug 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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