Correlation Between KyungIn Electronics and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics and Barunson 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 KyungIn Electronics and Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and Barunson Entertainment Arts, you can compare the effects of market volatilities on KyungIn Electronics and Barunson 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 KyungIn Electronics with a short position of Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and Barunson Entertainment.
Diversification Opportunities for KyungIn Electronics and Barunson Entertainment
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KyungIn and Barunson is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment and KyungIn Electronics 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 KyungIn Electronics Co are associated (or correlated) with Barunson Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barunson Entertainment has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and Barunson Entertainment go up and down completely randomly.
Pair Corralation between KyungIn Electronics and Barunson Entertainment
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.57 times more return on investment than Barunson Entertainment. However, KyungIn Electronics Co is 1.74 times less risky than Barunson Entertainment. It trades about -0.06 of its potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.05 per unit of risk. If you would invest 2,300,000 in KyungIn Electronics Co on September 2, 2024 and sell it today you would lose (240,000) from holding KyungIn Electronics Co or give up 10.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. Barunson Entertainment Arts
Performance |
| Timeline |
| KyungIn Electronics |
| Barunson Entertainment |
KyungIn Electronics and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and Barunson Entertainment
The main advantage of trading using opposite KyungIn Electronics and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics position performs unexpectedly, Barunson 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 Barunson Entertainment will offset losses from the drop in Barunson Entertainment's long position.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| Barunson Entertainment vs. AfreecaTV Co | Barunson Entertainment vs. Seegene | Barunson Entertainment vs. SS TECH | Barunson Entertainment vs. Busan Industrial Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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