Correlation Between Kosdaq Composite and Pan Entertainment
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By analyzing existing cross correlation between Kosdaq Composite Index and Pan Entertainment Co, you can compare the effects of market volatilities on Kosdaq Composite and Pan 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 Kosdaq Composite with a short position of Pan Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Pan Entertainment.
Diversification Opportunities for Kosdaq Composite and Pan Entertainment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kosdaq and Pan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Pan Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Entertainment and Kosdaq Composite 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 Kosdaq Composite Index are associated (or correlated) with Pan Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Entertainment has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Pan Entertainment go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Pan Entertainment
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Pan Entertainment. In addition to that, Kosdaq Composite is 1.19 times more volatile than Pan Entertainment Co. It trades about -0.19 of its total potential returns per unit of risk. Pan Entertainment Co is currently generating about -0.21 per unit of volatility. If you would invest 217,000 in Pan Entertainment Co on August 29, 2024 and sell it today you would lose (12,500) from holding Pan Entertainment Co or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Pan Entertainment Co
Performance |
| Timeline |
Kosdaq Composite and Pan Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Pan Entertainment Co
Pair trading matchups for Pan Entertainment
Pair Trading with Kosdaq Composite and Pan Entertainment
The main advantage of trading using opposite Kosdaq Composite and Pan Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Pan 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 Pan Entertainment will offset losses from the drop in Pan Entertainment's long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Pan Entertainment vs. AfreecaTV Co | Pan Entertainment vs. SS TECH | Pan Entertainment vs. Busan Industrial Co | Pan Entertainment vs. Busan Ind |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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