Correlation Between Barunson Entertainment and Genic
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and Genic 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 Genic 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 Genic Co, you can compare the effects of market volatilities on Barunson Entertainment and Genic 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 Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and Genic.
Diversification Opportunities for Barunson Entertainment and Genic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barunson and Genic is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic 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 Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and Genic go up and down completely randomly.
Pair Corralation between Barunson Entertainment and Genic
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to generate 0.28 times more return on investment than Genic. However, Barunson Entertainment Arts is 3.61 times less risky than Genic. It trades about 0.32 of its potential returns per unit of risk. Genic Co is currently generating about 0.09 per unit of risk. If you would invest 40,600 in Barunson Entertainment Arts on October 28, 2024 and sell it today you would earn a total of 3,300 from holding Barunson Entertainment Arts or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. Genic Co
Performance |
| Timeline |
| Barunson Entertainment |
| Genic |
Barunson Entertainment and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and Genic
The main advantage of trading using opposite Barunson Entertainment and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| Barunson Entertainment vs. Busan Industrial Co | Barunson Entertainment vs. Busan Ind | Barunson Entertainment vs. RPBio Inc | Barunson Entertainment vs. Finebesteel |
| Genic vs. NH Investment Securities | Genic vs. Hankook Furniture Co | Genic vs. Homecast CoLtd | Genic vs. SV Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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