Correlation Between YG Entertainment and Actoz Soft

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both YG Entertainment and Actoz Soft 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 YG Entertainment and Actoz Soft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YG Entertainment and Actoz Soft CoLtd, you can compare the effects of market volatilities on YG Entertainment and Actoz Soft 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 YG Entertainment with a short position of Actoz Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of YG Entertainment and Actoz Soft.

Diversification Opportunities for YG Entertainment and Actoz Soft

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between 122870 and Actoz is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding YG Entertainment and Actoz Soft CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actoz Soft CoLtd and YG 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 YG Entertainment are associated (or correlated) with Actoz Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actoz Soft CoLtd has no effect on the direction of YG Entertainment i.e., YG Entertainment and Actoz Soft go up and down completely randomly.

Pair Corralation between YG Entertainment and Actoz Soft

Assuming the 90 days trading horizon YG Entertainment is expected to generate 0.84 times more return on investment than Actoz Soft. However, YG Entertainment is 1.2 times less risky than Actoz Soft. It trades about 0.01 of its potential returns per unit of risk. Actoz Soft CoLtd is currently generating about 0.01 per unit of risk. If you would invest  4,810,752  in YG Entertainment on October 7, 2024 and sell it today you would lose (215,752) from holding YG Entertainment or give up 4.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

YG Entertainment  vs.  Actoz Soft CoLtd

 Performance 
       Timeline  
YG Entertainment 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in YG Entertainment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, YG Entertainment sustained solid returns over the last few months and may actually be approaching a breakup point.
Actoz Soft CoLtd 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Actoz Soft CoLtd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Actoz Soft sustained solid returns over the last few months and may actually be approaching a breakup point.

YG Entertainment and Actoz Soft Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with YG Entertainment and Actoz Soft

The main advantage of trading using opposite YG Entertainment and Actoz Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YG Entertainment position performs unexpectedly, Actoz Soft 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 Actoz Soft will offset losses from the drop in Actoz Soft's long position.
The idea behind YG Entertainment and Actoz Soft CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum