Correlation Between Pan Entertainment and DC Media
Can any of the company-specific risk be diversified away by investing in both Pan Entertainment and DC Media 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 Pan Entertainment and DC Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan Entertainment Co and DC Media CoLtd, you can compare the effects of market volatilities on Pan Entertainment and DC Media 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 Pan Entertainment with a short position of DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Entertainment and DC Media.
Diversification Opportunities for Pan Entertainment and DC Media
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pan and 263720 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pan Entertainment Co and DC Media CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media CoLtd and Pan Entertainment 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 Pan Entertainment Co are associated (or correlated) with DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media CoLtd has no effect on the direction of Pan Entertainment i.e., Pan Entertainment and DC Media go up and down completely randomly.
Pair Corralation between Pan Entertainment and DC Media
Assuming the 90 days trading horizon Pan Entertainment Co is expected to under-perform the DC Media. But the stock apears to be less risky and, when comparing its historical volatility, Pan Entertainment Co is 2.03 times less risky than DC Media. The stock trades about -0.1 of its potential returns per unit of risk. The DC Media CoLtd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,834,000 in DC Media CoLtd on September 2, 2024 and sell it today you would earn a total of 165,000 from holding DC Media CoLtd or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Entertainment Co vs. DC Media CoLtd
Performance |
| Timeline |
| Pan Entertainment |
| DC Media CoLtd |
Pan Entertainment and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Entertainment and DC Media
The main advantage of trading using opposite Pan Entertainment and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Entertainment position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media's long position.| Pan Entertainment vs. AfreecaTV Co | Pan Entertainment vs. Seegene | Pan Entertainment vs. SS TECH | Pan Entertainment vs. Busan Industrial Co |
| DC Media vs. Kaonmedia Co | DC Media vs. Keyang Electric Machinery | DC Media vs. TJ media Co | DC Media vs. DC Media 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |