Correlation Between Barunson Entertainment and Amogreentech
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on Barunson Entertainment and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and Amogreentech.
Diversification Opportunities for Barunson Entertainment and Amogreentech
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barunson and Amogreentech is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and Amogreentech go up and down completely randomly.
Pair Corralation between Barunson Entertainment and Amogreentech
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to under-perform the Amogreentech. But the stock apears to be less risky and, when comparing its historical volatility, Barunson Entertainment Arts is 1.32 times less risky than Amogreentech. The stock trades about -0.05 of its potential returns per unit of risk. The Amogreentech Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,373,000 in Amogreentech Co on November 19, 2024 and sell it today you would lose (720,000) from holding Amogreentech Co or give up 52.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. Amogreentech Co
Performance |
| Timeline |
| Barunson Entertainment |
| Amogreentech |
Barunson Entertainment and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and Amogreentech
The main advantage of trading using opposite Barunson Entertainment and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| Barunson Entertainment vs. SK Chemicals Co | Barunson Entertainment vs. Korea Petro Chemical | Barunson Entertainment vs. Kyung In Synthetic Corp | Barunson Entertainment vs. Kakao Games Corp |
| Amogreentech vs. PLAYWITH | Amogreentech vs. Hanjin Transportation Co | Amogreentech vs. Hotel Shilla Co | Amogreentech vs. Daesung Hi 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |