Correlation Between Takung Art and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Takung Art and Dolphin 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 Takung Art and Dolphin Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takung Art Co and Dolphin Entertainment, you can compare the effects of market volatilities on Takung Art and Dolphin 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 Takung Art with a short position of Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takung Art and Dolphin Entertainment.
Diversification Opportunities for Takung Art and Dolphin Entertainment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Takung and Dolphin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Takung Art Co and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment and Takung Art 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 Takung Art Co are associated (or correlated) with Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Takung Art i.e., Takung Art and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Takung Art and Dolphin Entertainment
If you would invest 23.00 in Takung Art Co on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Takung Art Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Takung Art Co vs. Dolphin Entertainment
Performance |
| Timeline |
| Takung Art |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dolphin Entertainment |
Takung Art and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takung Art and Dolphin Entertainment
The main advantage of trading using opposite Takung Art and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takung Art position performs unexpectedly, Dolphin 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| Takung Art vs. Oriental Culture Holding | Takung Art vs. Dolphin Entertainment | Takung Art vs. Hall of Fame | Takung Art vs. Wisekey International Holding |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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