Correlation Between Iljin HySolus and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both Iljin HySolus 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 Iljin HySolus and Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iljin HySolus Co and Barunson Entertainment Arts, you can compare the effects of market volatilities on Iljin HySolus 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 Iljin HySolus with a short position of Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iljin HySolus and Barunson Entertainment.
Diversification Opportunities for Iljin HySolus and Barunson Entertainment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iljin and Barunson is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Iljin HySolus 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 Iljin HySolus 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 Iljin HySolus 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 Iljin HySolus i.e., Iljin HySolus and Barunson Entertainment go up and down completely randomly.
Pair Corralation between Iljin HySolus and Barunson Entertainment
Assuming the 90 days trading horizon Iljin HySolus Co is expected to generate 0.89 times more return on investment than Barunson Entertainment. However, Iljin HySolus Co is 1.12 times less risky than Barunson Entertainment. It trades about -0.04 of its potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.06 per unit of risk. If you would invest 3,115,000 in Iljin HySolus Co on October 9, 2024 and sell it today you would lose (1,411,000) from holding Iljin HySolus Co or give up 45.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Iljin HySolus Co vs. Barunson Entertainment Arts
Performance |
| Timeline |
| Iljin HySolus |
| Barunson Entertainment |
Iljin HySolus and Barunson Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iljin HySolus and Barunson Entertainment
The main advantage of trading using opposite Iljin HySolus and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iljin HySolus 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.| Iljin HySolus vs. Daewoo Electronic Components | Iljin HySolus vs. Korean Reinsurance Co | Iljin HySolus vs. Hana Financial | Iljin HySolus vs. Jb Financial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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