Correlation Between Barunson Entertainment and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and Mirae Asset 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 Mirae Asset 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 Mirae Asset Daewoo, you can compare the effects of market volatilities on Barunson Entertainment and Mirae Asset 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 Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and Mirae Asset.
Diversification Opportunities for Barunson Entertainment and Mirae Asset
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barunson and Mirae is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo 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 Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset Daewoo has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and Mirae Asset go up and down completely randomly.
Pair Corralation between Barunson Entertainment and Mirae Asset
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the Mirae Asset. In addition to that, Barunson Entertainment is 1.25 times more volatile than Mirae Asset Daewoo. It trades about -0.05 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.05 per unit of volatility. If you would invest 716,481 in Mirae Asset Daewoo on September 14, 2024 and sell it today you would earn a total of 173,519 from holding Mirae Asset Daewoo or generate 24.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Barunson Entertainment |
| Mirae Asset Daewoo |
Barunson Entertainment and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and Mirae Asset
The main advantage of trading using opposite Barunson Entertainment and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| Barunson Entertainment vs. YG Entertainment | Barunson Entertainment vs. JYP Entertainment | Barunson Entertainment vs. Cube Entertainment | Barunson Entertainment vs. FNC Entertainment Co |
| Mirae Asset vs. Barunson Entertainment Arts | Mirae Asset vs. Nasmedia Co | Mirae Asset vs. Samyoung Electronics Co | Mirae Asset vs. T3 Entertainment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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