Correlation Between Barunson Entertainment and SS TECH
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and SS TECH 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 SS TECH 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 SS TECH, you can compare the effects of market volatilities on Barunson Entertainment and SS TECH 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 SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and SS TECH.
Diversification Opportunities for Barunson Entertainment and SS TECH
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barunson and 101490 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH 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 SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and SS TECH go up and down completely randomly.
Pair Corralation between Barunson Entertainment and SS TECH
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the SS TECH. But the stock apears to be less risky and, when comparing its historical volatility, Barunson Entertainment Arts is 1.81 times less risky than SS TECH. The stock trades about -0.18 of its potential returns per unit of risk. The SS TECH is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,315,000 in SS TECH on August 28, 2024 and sell it today you would earn a total of 50,000 from holding SS TECH or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. SS TECH
Performance |
| Timeline |
| Barunson Entertainment |
| SS TECH |
Barunson Entertainment and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and SS TECH
The main advantage of trading using opposite Barunson Entertainment and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH's long position.| Barunson Entertainment vs. AfreecaTV Co | Barunson Entertainment vs. SS TECH | Barunson Entertainment vs. Busan Industrial Co | Barunson Entertainment vs. Busan Ind |
| SS TECH vs. Korea Real Estate | SS TECH vs. Korea Ratings Co | SS TECH vs. IQuest Co | SS TECH vs. Wonbang Tech 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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