Correlation Between FNC Entertainment and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both FNC Entertainment and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on FNC Entertainment and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNC Entertainment and Duksan Hi.
Diversification Opportunities for FNC Entertainment and Duksan Hi
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between FNC and Duksan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding FNC Entertainment Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of FNC Entertainment i.e., FNC Entertainment and Duksan Hi go up and down completely randomly.
Pair Corralation between FNC Entertainment and Duksan Hi
Assuming the 90 days trading horizon FNC Entertainment Co is expected to generate 1.01 times more return on investment than Duksan Hi. However, FNC Entertainment is 1.01 times more volatile than Duksan Hi Metal. It trades about 0.17 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about 0.13 per unit of risk. If you would invest 287,500 in FNC Entertainment Co on December 1, 2024 and sell it today you would earn a total of 26,500 from holding FNC Entertainment Co or generate 9.22% 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. Duksan Hi Metal
Performance |
| Timeline |
| FNC Entertainment |
| Duksan Hi Metal |
FNC Entertainment and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNC Entertainment and Duksan Hi
The main advantage of trading using opposite FNC Entertainment and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNC Entertainment position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| FNC Entertainment vs. Com2uS | FNC Entertainment vs. NEOWIZ | FNC Entertainment vs. Wemade CoLtd | FNC Entertainment vs. Busan Industrial Co |
| Duksan Hi vs. ADTechnology CoLtd | Duksan Hi vs. Formetal Co | Duksan Hi vs. Dongil Metal Co | Duksan Hi vs. LG Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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