Correlation Between Barunson Entertainment and Hyundai Heavy
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and Hyundai Heavy 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 Hyundai Heavy 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 Hyundai Heavy Industries, you can compare the effects of market volatilities on Barunson Entertainment and Hyundai Heavy 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 Hyundai Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and Hyundai Heavy.
Diversification Opportunities for Barunson Entertainment and Hyundai Heavy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barunson and Hyundai is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and Hyundai Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Heavy Industries 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 Hyundai Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Heavy Industries has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and Hyundai Heavy go up and down completely randomly.
Pair Corralation between Barunson Entertainment and Hyundai Heavy
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to generate 0.71 times more return on investment than Hyundai Heavy. However, Barunson Entertainment Arts is 1.41 times less risky than Hyundai Heavy. It trades about 0.1 of its potential returns per unit of risk. Hyundai Heavy Industries is currently generating about 0.03 per unit of risk. If you would invest 42,300 in Barunson Entertainment Arts on October 26, 2024 and sell it today you would earn a total of 1,200 from holding Barunson Entertainment Arts or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. Hyundai Heavy Industries
Performance |
| Timeline |
| Barunson Entertainment |
| Hyundai Heavy Industries |
Barunson Entertainment and Hyundai Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and Hyundai Heavy
The main advantage of trading using opposite Barunson Entertainment and Hyundai Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, Hyundai Heavy 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 Hyundai Heavy will offset losses from the drop in Hyundai Heavy's long position.| Barunson Entertainment vs. Busan Industrial Co | Barunson Entertainment vs. Busan Ind | Barunson Entertainment vs. RPBio Inc | Barunson Entertainment vs. Finebesteel |
| Hyundai Heavy vs. TJ media Co | Hyundai Heavy vs. Hankook Furniture Co | Hyundai Heavy vs. Inzi Display CoLtd | Hyundai Heavy vs. Barunson Entertainment Arts |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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