Correlation Between FNC Entertainment and Asia Technology
Can any of the company-specific risk be diversified away by investing in both FNC Entertainment and Asia Technology 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 Asia Technology 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 Asia Technology Co, you can compare the effects of market volatilities on FNC Entertainment and Asia Technology 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 Asia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNC Entertainment and Asia Technology.
Diversification Opportunities for FNC Entertainment and Asia Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FNC and Asia is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FNC Entertainment Co and Asia Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Technology 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 Asia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Technology has no effect on the direction of FNC Entertainment i.e., FNC Entertainment and Asia Technology go up and down completely randomly.
Pair Corralation between FNC Entertainment and Asia Technology
Assuming the 90 days trading horizon FNC Entertainment Co is expected to under-perform the Asia Technology. In addition to that, FNC Entertainment is 1.42 times more volatile than Asia Technology Co. It trades about -0.14 of its total potential returns per unit of risk. Asia Technology Co is currently generating about 0.02 per unit of volatility. If you would invest 223,000 in Asia Technology Co on September 1, 2024 and sell it today you would earn a total of 1,500 from holding Asia Technology Co or generate 0.67% 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. Asia Technology Co
Performance |
| Timeline |
| FNC Entertainment |
| Asia Technology |
FNC Entertainment and Asia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNC Entertainment and Asia Technology
The main advantage of trading using opposite FNC Entertainment and Asia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNC Entertainment position performs unexpectedly, Asia Technology 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 Asia Technology will offset losses from the drop in Asia Technology's long position.| FNC Entertainment vs. AurosTechnology | FNC Entertainment vs. Amogreentech Co | FNC Entertainment vs. TJ media Co | FNC Entertainment vs. Raontech |
| Asia Technology vs. Korea New Network | Asia Technology vs. ICD Co | Asia Technology vs. DYPNF CoLtd | Asia Technology 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |