Correlation Between Sewoon Medical and Next Entertainment
Can any of the company-specific risk be diversified away by investing in both Sewoon Medical and Next 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 Sewoon Medical and Next Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sewoon Medical Co and Next Entertainment World, you can compare the effects of market volatilities on Sewoon Medical and Next 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 Sewoon Medical with a short position of Next Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sewoon Medical and Next Entertainment.
Diversification Opportunities for Sewoon Medical and Next Entertainment
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sewoon and Next is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sewoon Medical Co and Next Entertainment World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Entertainment World and Sewoon Medical 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 Sewoon Medical Co are associated (or correlated) with Next Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Entertainment World has no effect on the direction of Sewoon Medical i.e., Sewoon Medical and Next Entertainment go up and down completely randomly.
Pair Corralation between Sewoon Medical and Next Entertainment
Assuming the 90 days trading horizon Sewoon Medical Co is expected to under-perform the Next Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Sewoon Medical Co is 2.04 times less risky than Next Entertainment. The stock trades about -0.11 of its potential returns per unit of risk. The Next Entertainment World is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 235,500 in Next Entertainment World on September 3, 2024 and sell it today you would lose (1,000.00) from holding Next Entertainment World or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sewoon Medical Co vs. Next Entertainment World
Performance |
| Timeline |
| Sewoon Medical |
| Next Entertainment World |
Sewoon Medical and Next Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sewoon Medical and Next Entertainment
The main advantage of trading using opposite Sewoon Medical and Next Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sewoon Medical position performs unexpectedly, Next 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 Next Entertainment will offset losses from the drop in Next Entertainment's long position.| Sewoon Medical vs. Mgame Corp | Sewoon Medical vs. RFTech Co | Sewoon Medical vs. Yura Tech Co | Sewoon Medical vs. Intellian Technologies |
| Next Entertainment vs. Korea New Network | Next Entertainment vs. ICD Co | Next Entertainment vs. DYPNF CoLtd | Next 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |