Correlation Between Smurfit Kappa and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both Smurfit Kappa and Boyaa Interactive 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 Smurfit Kappa and Boyaa Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit Kappa Group and Boyaa Interactive International, you can compare the effects of market volatilities on Smurfit Kappa and Boyaa Interactive 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 Smurfit Kappa with a short position of Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit Kappa and Boyaa Interactive.
Diversification Opportunities for Smurfit Kappa and Boyaa Interactive
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Smurfit and Boyaa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit Kappa Group and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive and Smurfit Kappa 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 Smurfit Kappa Group are associated (or correlated) with Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of Smurfit Kappa i.e., Smurfit Kappa and Boyaa Interactive go up and down completely randomly.
Pair Corralation between Smurfit Kappa and Boyaa Interactive
Assuming the 90 days horizon Smurfit Kappa is expected to generate 14.37 times less return on investment than Boyaa Interactive. But when comparing it to its historical volatility, Smurfit Kappa Group is 3.59 times less risky than Boyaa Interactive. It trades about 0.14 of its potential returns per unit of risk. Boyaa Interactive International is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Boyaa Interactive International on September 1, 2024 and sell it today you would earn a total of 38.00 from holding Boyaa Interactive International or generate 180.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Smurfit Kappa Group vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| Smurfit Kappa Group |
| Boyaa Interactive |
Smurfit Kappa and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit Kappa and Boyaa Interactive
The main advantage of trading using opposite Smurfit Kappa and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit Kappa position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| Smurfit Kappa vs. Packaging of | Smurfit Kappa vs. Superior Plus Corp | Smurfit Kappa vs. Origin Agritech | Smurfit Kappa vs. Identiv |
| Boyaa Interactive vs. Park Hotels Resorts | Boyaa Interactive vs. JSC Halyk bank | Boyaa Interactive vs. HYATT HOTELS A | Boyaa Interactive vs. COVIVIO HOTELS INH |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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