Correlation Between Barunson Entertainment and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and PLAYWITH 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 PLAYWITH 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 PLAYWITH, you can compare the effects of market volatilities on Barunson Entertainment and PLAYWITH 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 PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and PLAYWITH.
Diversification Opportunities for Barunson Entertainment and PLAYWITH
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barunson and PLAYWITH is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH 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 PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and PLAYWITH go up and down completely randomly.
Pair Corralation between Barunson Entertainment and PLAYWITH
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to generate 1.2 times more return on investment than PLAYWITH. However, Barunson Entertainment is 1.2 times more volatile than PLAYWITH. It trades about 0.03 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.02 per unit of risk. If you would invest 44,400 in Barunson Entertainment Arts on October 22, 2024 and sell it today you would earn a total of 300.00 from holding Barunson Entertainment Arts or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. PLAYWITH
Performance |
| Timeline |
| Barunson Entertainment |
| PLAYWITH |
Barunson Entertainment and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and PLAYWITH
The main advantage of trading using opposite Barunson Entertainment and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Barunson Entertainment vs. KB Financial Group | Barunson Entertainment vs. Shinhan Financial Group | Barunson Entertainment vs. Hana Financial | Barunson Entertainment vs. Woori Financial Group |
| PLAYWITH vs. Lotte Data Communication | PLAYWITH vs. Daehan Steel | PLAYWITH vs. Hankuk Steel Wire | PLAYWITH vs. Hyundai BNG Steel |
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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