Correlation Between SOOSAN INT and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both SOOSAN INT and Barunson Entertainment 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 SOOSAN INT and Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOOSAN INT Co and Barunson Entertainment Arts, you can compare the effects of market volatilities on SOOSAN INT and Barunson Entertainment 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 SOOSAN INT with a short position of Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOOSAN INT and Barunson Entertainment.
Diversification Opportunities for SOOSAN INT and Barunson Entertainment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SOOSAN and Barunson is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SOOSAN INT Co and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment and SOOSAN INT 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 SOOSAN INT Co are associated (or correlated) with Barunson Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barunson Entertainment has no effect on the direction of SOOSAN INT i.e., SOOSAN INT and Barunson Entertainment go up and down completely randomly.
Pair Corralation between SOOSAN INT and Barunson Entertainment
Assuming the 90 days trading horizon SOOSAN INT Co is expected to under-perform the Barunson Entertainment. In addition to that, SOOSAN INT is 1.01 times more volatile than Barunson Entertainment Arts. It trades about -0.31 of its total potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.2 per unit of volatility. If you would invest 47,500 in Barunson Entertainment Arts on August 25, 2024 and sell it today you would lose (3,800) from holding Barunson Entertainment Arts or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SOOSAN INT Co vs. Barunson Entertainment Arts
Performance |
| Timeline |
| SOOSAN INT |
| Barunson Entertainment |
SOOSAN INT and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOOSAN INT and Barunson Entertainment
The main advantage of trading using opposite SOOSAN INT and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOOSAN INT position performs unexpectedly, Barunson Entertainment 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 Barunson Entertainment will offset losses from the drop in Barunson Entertainment's long position.| SOOSAN INT vs. EBEST Investment Securities | SOOSAN INT vs. Taeyang Metal Industrial | SOOSAN INT vs. Kukil Metal Co | SOOSAN INT vs. Golden Bridge Investment |
| Barunson Entertainment vs. Seoam Machinery Industry | Barunson Entertainment vs. GS Engineering Construction | Barunson Entertainment vs. Dongwoo Farm To | Barunson Entertainment vs. T3 Entertainment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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