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

0.0

Correlation Coefficient

Takung Art  Dolphin Entertainment

Pay attention - limited upside

The 3 months correlation between Takung and Dolphin is 0.0. 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 (100.00) in Takung Art Co on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Takung Art Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Takung Art Co  vs.  Dolphin Entertainment

Takung Art

Risk-Adjusted Performance

Very Weak

Over the last 90 days Takung Art Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Takung Art is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Dolphin Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dolphin Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dolphin Entertainment is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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.

The idea behind Takung Art Co and Dolphin Entertainment 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.