Correlation Between Asiana Airlines and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both Asiana Airlines 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 Asiana Airlines and Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiana Airlines and Barunson Entertainment Arts, you can compare the effects of market volatilities on Asiana Airlines 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 Asiana Airlines with a short position of Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiana Airlines and Barunson Entertainment.
Diversification Opportunities for Asiana Airlines and Barunson Entertainment
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asiana and Barunson is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Asiana Airlines and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment and Asiana Airlines 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 Asiana Airlines 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 Asiana Airlines i.e., Asiana Airlines and Barunson Entertainment go up and down completely randomly.
Pair Corralation between Asiana Airlines and Barunson Entertainment
Assuming the 90 days trading horizon Asiana Airlines is expected to generate 1.03 times more return on investment than Barunson Entertainment. However, Asiana Airlines is 1.03 times more volatile than Barunson Entertainment Arts. It trades about 0.14 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 1,009,000 in Asiana Airlines on September 1, 2024 and sell it today you would earn a total of 65,000 from holding Asiana Airlines or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiana Airlines vs. Barunson Entertainment Arts
Performance |
| Timeline |
| Asiana Airlines |
| Barunson Entertainment |
Asiana Airlines and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiana Airlines and Barunson Entertainment
The main advantage of trading using opposite Asiana Airlines and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiana Airlines 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.| Asiana Airlines vs. Barunson Entertainment Arts | Asiana Airlines vs. DC Media Co | Asiana Airlines vs. ChipsMedia | Asiana Airlines vs. SBI Investment KOREA |
| Barunson Entertainment vs. Daishin Information Communications | Barunson Entertainment vs. DB Financial Investment | Barunson Entertainment vs. BNK Financial Group | Barunson Entertainment vs. Jeju Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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