Correlation Between Actoz Soft and YG Entertainment
Can any of the company-specific risk be diversified away by investing in both Actoz Soft and YG 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 Actoz Soft and YG Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actoz Soft CoLtd and YG Entertainment, you can compare the effects of market volatilities on Actoz Soft and YG 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 Actoz Soft with a short position of YG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actoz Soft and YG Entertainment.
Diversification Opportunities for Actoz Soft and YG Entertainment
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Actoz and 122870 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Actoz Soft CoLtd and YG Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YG Entertainment and Actoz Soft 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 Actoz Soft CoLtd are associated (or correlated) with YG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YG Entertainment has no effect on the direction of Actoz Soft i.e., Actoz Soft and YG Entertainment go up and down completely randomly.
Pair Corralation between Actoz Soft and YG Entertainment
Assuming the 90 days trading horizon Actoz Soft CoLtd is expected to generate 1.54 times more return on investment than YG Entertainment. However, Actoz Soft is 1.54 times more volatile than YG Entertainment. It trades about 0.23 of its potential returns per unit of risk. YG Entertainment is currently generating about 0.08 per unit of risk. If you would invest 591,000 in Actoz Soft CoLtd on September 14, 2024 and sell it today you would earn a total of 129,000 from holding Actoz Soft CoLtd or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Actoz Soft CoLtd vs. YG Entertainment
Performance |
| Timeline |
| Actoz Soft CoLtd |
| YG Entertainment |
Actoz Soft and YG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actoz Soft and YG Entertainment
The main advantage of trading using opposite Actoz Soft and YG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actoz Soft position performs unexpectedly, YG 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 YG Entertainment will offset losses from the drop in YG Entertainment's long position.| Actoz Soft vs. YG Entertainment | Actoz Soft vs. JYP Entertainment | Actoz Soft vs. Cube Entertainment | Actoz Soft vs. FNC Entertainment Co |
| YG Entertainment vs. JYP Entertainment | YG Entertainment vs. SM Entertainment Co | YG Entertainment vs. Cube Entertainment | YG Entertainment vs. FNC Entertainment 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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