Correlation Between Wonbang Tech and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Mgame Corp 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 Wonbang Tech and Mgame Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and Mgame Corp, you can compare the effects of market volatilities on Wonbang Tech and Mgame Corp 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 Wonbang Tech with a short position of Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Mgame Corp.
Diversification Opportunities for Wonbang Tech and Mgame Corp
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonbang and Mgame is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame Corp and Wonbang Tech 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 Wonbang Tech Co are associated (or correlated) with Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Mgame Corp go up and down completely randomly.
Pair Corralation between Wonbang Tech and Mgame Corp
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 1.63 times more return on investment than Mgame Corp. However, Wonbang Tech is 1.63 times more volatile than Mgame Corp. It trades about 0.04 of its potential returns per unit of risk. Mgame Corp is currently generating about -0.02 per unit of risk. If you would invest 941,387 in Wonbang Tech Co on October 15, 2024 and sell it today you would earn a total of 507,613 from holding Wonbang Tech Co or generate 53.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.02% |
| Values | Daily Returns |
Wonbang Tech Co vs. Mgame Corp
Performance |
| Timeline |
| Wonbang Tech |
| Mgame Corp |
Wonbang Tech and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Mgame Corp
The main advantage of trading using opposite Wonbang Tech and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp's long position.| Wonbang Tech vs. Coloray International Investment | Wonbang Tech vs. SV Investment | Wonbang Tech vs. GS Retail Co | Wonbang Tech vs. Sangsangin Investment Securities |
| Mgame Corp vs. System and Application | Mgame Corp vs. EBEST Investment Securities | Mgame Corp vs. Lotte Data Communication | Mgame Corp vs. Moadata 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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