Correlation Between Barunson Entertainment and CKH Food
Can any of the company-specific risk be diversified away by investing in both Barunson Entertainment and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Barunson Entertainment and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barunson Entertainment and CKH Food.
Diversification Opportunities for Barunson Entertainment and CKH Food
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barunson and CKH is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Barunson Entertainment Arts and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Barunson Entertainment i.e., Barunson Entertainment and CKH Food go up and down completely randomly.
Pair Corralation between Barunson Entertainment and CKH Food
Assuming the 90 days trading horizon Barunson Entertainment Arts is expected to generate 0.72 times more return on investment than CKH Food. However, Barunson Entertainment Arts is 1.38 times less risky than CKH Food. It trades about 0.07 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.21 per unit of risk. If you would invest 42,900 in Barunson Entertainment Arts on November 7, 2024 and sell it today you would earn a total of 600.00 from holding Barunson Entertainment Arts or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Barunson Entertainment Arts vs. CKH Food Health
Performance |
| Timeline |
| Barunson Entertainment |
| CKH Food Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barunson Entertainment and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barunson Entertainment and CKH Food
The main advantage of trading using opposite Barunson Entertainment and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barunson Entertainment position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| Barunson Entertainment vs. Hana Financial | Barunson Entertainment vs. Heungkuk Metaltech CoLtd | Barunson Entertainment vs. Next Entertainment World | Barunson Entertainment vs. Cuckoo Electronics Co |
| CKH Food vs. Solution Advanced Technology | CKH Food vs. Shinhan Inverse WTI | CKH Food vs. ISU Chemical 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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