Correlation Between Next Entertainment and Aniplus
Can any of the company-specific risk be diversified away by investing in both Next Entertainment and Aniplus 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 Next Entertainment and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Next Entertainment World and Aniplus, you can compare the effects of market volatilities on Next Entertainment and Aniplus 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 Next Entertainment with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Next Entertainment and Aniplus.
Diversification Opportunities for Next Entertainment and Aniplus
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Next and Aniplus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Next Entertainment World and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and Next 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 Next Entertainment World are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of Next Entertainment i.e., Next Entertainment and Aniplus go up and down completely randomly.
Pair Corralation between Next Entertainment and Aniplus
Assuming the 90 days trading horizon Next Entertainment World is expected to under-perform the Aniplus. In addition to that, Next Entertainment is 1.05 times more volatile than Aniplus. It trades about -0.08 of its total potential returns per unit of risk. Aniplus is currently generating about -0.03 per unit of volatility. If you would invest 455,500 in Aniplus on September 12, 2024 and sell it today you would lose (196,000) from holding Aniplus or give up 43.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Next Entertainment World vs. Aniplus
Performance |
| Timeline |
| Next Entertainment World |
| Aniplus |
Next Entertainment and Aniplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Next Entertainment and Aniplus
The main advantage of trading using opposite Next Entertainment and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Next Entertainment position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.| Next Entertainment vs. YG Entertainment | Next Entertainment vs. JYP Entertainment | Next Entertainment vs. Cube Entertainment | Next Entertainment vs. FNC Entertainment Co |
| Aniplus vs. CKH Food Health | Aniplus vs. Daewon Media Co | Aniplus vs. Next Entertainment World | Aniplus vs. CJ Seafood Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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