Correlation Between Korea New and Pan Entertainment
Can any of the company-specific risk be diversified away by investing in both Korea New 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 Korea New and Pan Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea New Network and Pan Entertainment Co, you can compare the effects of market volatilities on Korea New 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 Korea New with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea New and Pan Entertainment.
Diversification Opportunities for Korea New and Pan Entertainment
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Korea and Pan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Korea New Network and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and Korea New 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 Korea New Network 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 Korea New i.e., Korea New and Pan Entertainment go up and down completely randomly.
Pair Corralation between Korea New and Pan Entertainment
Assuming the 90 days trading horizon Korea New Network is expected to under-perform the Pan Entertainment. In addition to that, Korea New is 1.12 times more volatile than Pan Entertainment Co. It trades about -0.16 of its total potential returns per unit of risk. Pan Entertainment Co is currently generating about 0.16 per unit of volatility. If you would invest 212,000 in Pan Entertainment Co on September 1, 2024 and sell it today you would earn a total of 12,000 from holding Pan Entertainment Co or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Korea New Network vs. Pan Entertainment Co
Performance |
| Timeline |
| Korea New Network |
| Pan Entertainment |
Korea New and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea New and Pan Entertainment
The main advantage of trading using opposite Korea New and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea New 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.| Korea New vs. KT Submarine Telecom | Korea New vs. SK Telecom Co | Korea New vs. Formetal Co | Korea New vs. Innowireless Co |
| Pan Entertainment vs. AfreecaTV Co | Pan Entertainment vs. Seegene | Pan Entertainment vs. SS TECH | Pan Entertainment vs. Busan Industrial 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |