Correlation Between WEBTOON Entertainment and Phoenix New
Can any of the company-specific risk be diversified away by investing in both WEBTOON Entertainment and Phoenix New 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 WEBTOON Entertainment and Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEBTOON Entertainment Common and Phoenix New Media, you can compare the effects of market volatilities on WEBTOON Entertainment and Phoenix New 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 WEBTOON Entertainment with a short position of Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBTOON Entertainment and Phoenix New.
Diversification Opportunities for WEBTOON Entertainment and Phoenix New
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WEBTOON and Phoenix is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding WEBTOON Entertainment Common and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media and WEBTOON 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 WEBTOON Entertainment Common are associated (or correlated) with Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of WEBTOON Entertainment i.e., WEBTOON Entertainment and Phoenix New go up and down completely randomly.
Pair Corralation between WEBTOON Entertainment and Phoenix New
Given the investment horizon of 90 days WEBTOON Entertainment Common is expected to generate 1.04 times more return on investment than Phoenix New. However, WEBTOON Entertainment is 1.04 times more volatile than Phoenix New Media. It trades about -0.01 of its potential returns per unit of risk. Phoenix New Media is currently generating about -0.02 per unit of risk. If you would invest 939.00 in WEBTOON Entertainment Common on May 4, 2025 and sell it today you would lose (16.00) from holding WEBTOON Entertainment Common or give up 1.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WEBTOON Entertainment Common vs. Phoenix New Media
Performance |
Timeline |
WEBTOON Entertainment |
Phoenix New Media |
WEBTOON Entertainment and Phoenix New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEBTOON Entertainment and Phoenix New
The main advantage of trading using opposite WEBTOON Entertainment and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBTOON Entertainment position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.WEBTOON Entertainment vs. HF Sinclair Corp | WEBTOON Entertainment vs. Norwegian Air Shuttle | WEBTOON Entertainment vs. Keurig Dr Pepper | WEBTOON Entertainment vs. Anheuser Busch Inbev |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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