Correlation Between FNC Entertainment and SBI Investment
Can any of the company-specific risk be diversified away by investing in both FNC Entertainment and SBI Investment 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 FNC Entertainment and SBI Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNC Entertainment Co and SBI Investment KOREA, you can compare the effects of market volatilities on FNC Entertainment and SBI Investment 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 FNC Entertainment with a short position of SBI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNC Entertainment and SBI Investment.
Diversification Opportunities for FNC Entertainment and SBI Investment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FNC and SBI is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding FNC Entertainment Co and SBI Investment KOREA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Investment KOREA and FNC 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 FNC Entertainment Co are associated (or correlated) with SBI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Investment KOREA has no effect on the direction of FNC Entertainment i.e., FNC Entertainment and SBI Investment go up and down completely randomly.
Pair Corralation between FNC Entertainment and SBI Investment
Assuming the 90 days trading horizon FNC Entertainment Co is expected to under-perform the SBI Investment. In addition to that, FNC Entertainment is 1.07 times more volatile than SBI Investment KOREA. It trades about -0.14 of its total potential returns per unit of risk. SBI Investment KOREA is currently generating about 0.11 per unit of volatility. If you would invest 68,600 in SBI Investment KOREA on September 1, 2024 and sell it today you would earn a total of 4,300 from holding SBI Investment KOREA or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNC Entertainment Co vs. SBI Investment KOREA
Performance |
| Timeline |
| FNC Entertainment |
| SBI Investment KOREA |
FNC Entertainment and SBI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNC Entertainment and SBI Investment
The main advantage of trading using opposite FNC Entertainment and SBI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNC Entertainment position performs unexpectedly, SBI Investment 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 SBI Investment will offset losses from the drop in SBI Investment's long position.| FNC Entertainment vs. AurosTechnology | FNC Entertainment vs. Amogreentech Co | FNC Entertainment vs. TJ media Co | FNC Entertainment vs. Raontech |
| SBI Investment vs. Ssangyong Information Communication | SBI Investment vs. Sejong Telecom | SBI Investment vs. Wireless Power Amplifier | SBI Investment vs. Daishin Information Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |