Correlation Between Wireless Power and FNC Entertainment
Can any of the company-specific risk be diversified away by investing in both Wireless Power and FNC Entertainment 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 Wireless Power and FNC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and FNC Entertainment Co, you can compare the effects of market volatilities on Wireless Power and FNC Entertainment 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 Wireless Power with a short position of FNC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and FNC Entertainment.
Diversification Opportunities for Wireless Power and FNC Entertainment
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wireless and FNC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and FNC Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNC Entertainment and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with FNC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNC Entertainment has no effect on the direction of Wireless Power i.e., Wireless Power and FNC Entertainment go up and down completely randomly.
Pair Corralation between Wireless Power and FNC Entertainment
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 1.86 times more return on investment than FNC Entertainment. However, Wireless Power is 1.86 times more volatile than FNC Entertainment Co. It trades about 0.31 of its potential returns per unit of risk. FNC Entertainment Co is currently generating about -0.24 per unit of risk. If you would invest 245,000 in Wireless Power Amplifier on October 14, 2024 and sell it today you would earn a total of 48,000 from holding Wireless Power Amplifier or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. FNC Entertainment Co
Performance |
| Timeline |
| Wireless Power Amplifier |
| FNC Entertainment |
Wireless Power and FNC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and FNC Entertainment
The main advantage of trading using opposite Wireless Power and FNC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, FNC Entertainment 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 FNC Entertainment will offset losses from the drop in FNC Entertainment's long position.| Wireless Power vs. Infinitt Healthcare Co | Wireless Power vs. Genie Music | Wireless Power vs. Duksan Hi Metal | Wireless Power vs. Sejong Telecom |
| FNC Entertainment vs. Sangsin Energy Display | FNC Entertainment vs. Digital Power Communications | FNC Entertainment vs. Inzi Display CoLtd | FNC Entertainment vs. PLAYWITH |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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