Correlation Between Barunson Entertainment and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Barunson Entertainment and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and BIT Computer.
Diversification Opportunities for Barunson Entertainment and BIT Computer
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barunson and BIT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and BIT Computer go up and down completely randomly.
Pair Corralation between Barunson Entertainment and BIT Computer
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the BIT Computer. In addition to that, Barunson Entertainment is 1.34 times more volatile than BIT Computer Co. It trades about -0.02 of its total potential returns per unit of risk. BIT Computer Co is currently generating about 0.0 per unit of volatility. If you would invest 494,636 in BIT Computer Co on October 30, 2024 and sell it today you would lose (5,636) from holding BIT Computer Co or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. BIT Computer Co
Performance |
| Timeline |
| Barunson Entertainment |
| BIT Computer |
Barunson Entertainment and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and BIT Computer
The main advantage of trading using opposite Barunson Entertainment and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Barunson Entertainment vs. Heungkuk Metaltech CoLtd | Barunson Entertainment vs. LG Household Healthcare | Barunson Entertainment vs. LG Household Healthcare | Barunson Entertainment vs. Jeju Air Co |
| BIT Computer vs. Alton Sports CoLtd | BIT Computer vs. Korea Shipbuilding Offshore | BIT Computer vs. Green Cross Medical | BIT Computer vs. MetaLabs 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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