Correlation Between Youngsin Metal and Barunson Entertainment
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal 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 Youngsin Metal and Barunson Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngsin Metal Industrial and Barunson Entertainment Arts, you can compare the effects of market volatilities on Youngsin Metal 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 Youngsin Metal with a short position of Barunson Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Barunson Entertainment.
Diversification Opportunities for Youngsin Metal and Barunson Entertainment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Youngsin and Barunson is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial and Barunson Entertainment Arts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barunson Entertainment and Youngsin Metal 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 Youngsin Metal Industrial 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 Youngsin Metal i.e., Youngsin Metal and Barunson Entertainment go up and down completely randomly.
Pair Corralation between Youngsin Metal and Barunson Entertainment
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to generate 1.2 times more return on investment than Barunson Entertainment. However, Youngsin Metal is 1.2 times more volatile than Barunson Entertainment Arts. It trades about -0.03 of its potential returns per unit of risk. Barunson Entertainment Arts is currently generating about -0.05 per unit of risk. If you would invest 267,000 in Youngsin Metal Industrial on September 25, 2024 and sell it today you would lose (25,500) from holding Youngsin Metal Industrial or give up 9.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Youngsin Metal Industrial vs. Barunson Entertainment Arts
Performance |
Timeline |
Youngsin Metal Industrial |
Barunson Entertainment |
Youngsin Metal and Barunson Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Youngsin Metal and Barunson Entertainment
The main advantage of trading using opposite Youngsin Metal and Barunson Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal 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.Youngsin Metal vs. Busan Industrial Co | Youngsin Metal vs. Busan Ind | Youngsin Metal vs. Mirae Asset Daewoo | Youngsin Metal vs. Shinhan WTI Futures |
Barunson Entertainment vs. Hyundai Engineering Plastics | Barunson Entertainment vs. Lake Materials Co | Barunson Entertainment vs. RF Materials Co | Barunson Entertainment vs. Youngsin Metal Industrial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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