Correlation Between SKONEC Entertainment and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and SeAH Bestee 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 SKONEC Entertainment and SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and SeAH Bestee, you can compare the effects of market volatilities on SKONEC Entertainment and SeAH Bestee 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 SKONEC Entertainment with a short position of SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and SeAH Bestee.
Diversification Opportunities for SKONEC Entertainment and SeAH Bestee
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SKONEC and SeAH is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee and SKONEC 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 SKONEC Entertainment Co are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and SeAH Bestee go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and SeAH Bestee
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to under-perform the SeAH Bestee. In addition to that, SKONEC Entertainment is 1.12 times more volatile than SeAH Bestee. It trades about -0.13 of its total potential returns per unit of risk. SeAH Bestee is currently generating about 0.02 per unit of volatility. If you would invest 2,260,000 in SeAH Bestee on September 2, 2024 and sell it today you would earn a total of 40,000 from holding SeAH Bestee or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. SeAH Bestee
Performance |
| Timeline |
| SKONEC Entertainment |
| SeAH Bestee |
SKONEC Entertainment and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and SeAH Bestee
The main advantage of trading using opposite SKONEC Entertainment and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| SKONEC Entertainment vs. Devsisters corporation | SKONEC Entertainment vs. Konan Technology | SKONEC Entertainment vs. Nice Information Telecommunication | SKONEC Entertainment vs. InfoBank |
| SeAH Bestee vs. TJ media Co | SeAH Bestee vs. QUALITAS SEMICONDUCTOR LTD | SeAH Bestee vs. Heungkuk Metaltech CoLtd | SeAH Bestee vs. YG Entertainment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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