Correlation Between Barunson Entertainment and APS Holdings
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and APS Holdings 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 APS Holdings 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 APS Holdings, you can compare the effects of market volatilities on Barunson Entertainment and APS Holdings 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 APS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and APS Holdings.
Diversification Opportunities for Barunson Entertainment and APS Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barunson and APS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and APS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Holdings 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 APS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Holdings has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and APS Holdings go up and down completely randomly.
Pair Corralation between Barunson Entertainment and APS Holdings
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the APS Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Barunson Entertainment Arts is 1.02 times less risky than APS Holdings. The stock trades about -0.39 of its potential returns per unit of risk. The APS Holdings is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 603,000 in APS Holdings on September 12, 2024 and sell it today you would lose (58,000) from holding APS Holdings or give up 9.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. APS Holdings
Performance |
| Timeline |
| Barunson Entertainment |
| APS Holdings |
Barunson Entertainment and APS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and APS Holdings
The main advantage of trading using opposite Barunson Entertainment and APS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, APS Holdings 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 APS Holdings will offset losses from the drop in APS Holdings' long position.| Barunson Entertainment vs. YG Entertainment | Barunson Entertainment vs. JYP Entertainment | Barunson Entertainment vs. Cube Entertainment | Barunson Entertainment vs. FNC Entertainment Co |
| APS Holdings vs. Coloray International Investment | APS Holdings vs. Lotte Fine Chemical | APS Holdings vs. E Investment Development | APS Holdings vs. Hannong Chemicals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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