Correlation Between Barunson Entertainment and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and KIWI Media 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 KIWI Media 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 KIWI Media Group, you can compare the effects of market volatilities on Barunson Entertainment and KIWI Media 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 KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and KIWI Media.
Diversification Opportunities for Barunson Entertainment and KIWI Media
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barunson and KIWI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group 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 KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and KIWI Media go up and down completely randomly.
Pair Corralation between Barunson Entertainment and KIWI Media
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to generate 0.69 times more return on investment than KIWI Media. However, Barunson Entertainment Arts is 1.45 times less risky than KIWI Media. It trades about -0.18 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.15 per unit of risk. If you would invest 47,300 in Barunson Entertainment Arts on August 29, 2024 and sell it today you would lose (3,600) from holding Barunson Entertainment Arts or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. KIWI Media Group
Performance |
| Timeline |
| Barunson Entertainment |
| KIWI Media Group |
Barunson Entertainment and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and KIWI Media
The main advantage of trading using opposite Barunson Entertainment and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Barunson Entertainment vs. AfreecaTV Co | Barunson Entertainment vs. SS TECH | Barunson Entertainment vs. Busan Industrial Co | Barunson Entertainment vs. Busan Ind |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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