Correlation Between Barunson Entertainment and Kuk Young
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and Kuk Young 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 Barunson Entertainment and Kuk Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barunson Entertainment Arts and Kuk Young GM, you can compare the effects of market volatilities on Barunson Entertainment and Kuk Young 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 Barunson Entertainment with a short position of Kuk Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and Kuk Young.
Diversification Opportunities for Barunson Entertainment and Kuk Young
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barunson and Kuk is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and Kuk Young GM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuk Young GM and Barunson 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 Barunson Entertainment Arts are associated (or correlated) with Kuk Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuk Young GM has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and Kuk Young go up and down completely randomly.
Pair Corralation between Barunson Entertainment and Kuk Young
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the Kuk Young. But the stock apears to be less risky and, when comparing its historical volatility, Barunson Entertainment Arts is 1.25 times less risky than Kuk Young. The stock trades about -0.05 of its potential returns per unit of risk. The Kuk Young GM is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 140,900 in Kuk Young GM on August 29, 2024 and sell it today you would earn a total of 42,500 from holding Kuk Young GM or generate 30.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. Kuk Young GM
Performance |
| Timeline |
| Barunson Entertainment |
| Kuk Young GM |
Barunson Entertainment and Kuk Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and Kuk Young
The main advantage of trading using opposite Barunson Entertainment and Kuk Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, Kuk Young 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 Kuk Young will offset losses from the drop in Kuk Young's long position.| Barunson Entertainment vs. AfreecaTV Co | Barunson Entertainment vs. SS TECH | Barunson Entertainment vs. Busan Industrial Co | Barunson Entertainment vs. Busan Ind |
| Kuk Young vs. KakaoBank Corp | Kuk Young vs. Jeju Bank | Kuk Young vs. Automobile Pc | Kuk Young vs. Dongbu Insurance 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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