Correlation Between Itcen and Pan Entertainment
Can any of the company-specific risk be diversified away by investing in both Itcen 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 Itcen and Pan Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itcen Co and Pan Entertainment Co, you can compare the effects of market volatilities on Itcen 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 Itcen with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itcen and Pan Entertainment.
Diversification Opportunities for Itcen and Pan Entertainment
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Itcen and Pan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Itcen Co and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and Itcen 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 Itcen Co 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 Itcen i.e., Itcen and Pan Entertainment go up and down completely randomly.
Pair Corralation between Itcen and Pan Entertainment
Assuming the 90 days trading horizon Itcen Co is expected to under-perform the Pan Entertainment. In addition to that, Itcen is 1.94 times more volatile than Pan Entertainment Co. It trades about -0.09 of its total potential returns per unit of risk. Pan Entertainment Co is currently generating about 0.1 per unit of volatility. If you would invest 219,500 in Pan Entertainment Co on October 14, 2024 and sell it today you would earn a total of 7,000 from holding Pan Entertainment Co or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itcen Co vs. Pan Entertainment Co
Performance |
| Timeline |
| Itcen |
| Pan Entertainment |
Itcen and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itcen and Pan Entertainment
The main advantage of trading using opposite Itcen and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itcen 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.| Itcen vs. Pan Entertainment Co | Itcen vs. SAMG Entertainment Co | Itcen vs. Alton Sports CoLtd | Itcen vs. Daou Data Corp |
| Pan Entertainment vs. SeAH Besteel Corp | Pan Entertainment vs. Daechang Steel Co | Pan Entertainment vs. MediaZen | Pan Entertainment vs. Tway Air 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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