Correlation Between Mgame Corp and Husteel
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Husteel 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 Mgame Corp and Husteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Husteel, you can compare the effects of market volatilities on Mgame Corp and Husteel 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 Mgame Corp with a short position of Husteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Husteel.
Diversification Opportunities for Mgame Corp and Husteel
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mgame and Husteel is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Husteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husteel and Mgame Corp 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 Mgame Corp are associated (or correlated) with Husteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husteel has no effect on the direction of Mgame Corp i.e., Mgame Corp and Husteel go up and down completely randomly.
Pair Corralation between Mgame Corp and Husteel
Assuming the 90 days trading horizon Mgame Corp is expected to under-perform the Husteel. But the stock apears to be less risky and, when comparing its historical volatility, Mgame Corp is 2.17 times less risky than Husteel. The stock trades about -0.21 of its potential returns per unit of risk. The Husteel is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 393,500 in Husteel on November 7, 2024 and sell it today you would earn a total of 36,500 from holding Husteel or generate 9.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mgame Corp vs. Husteel
Performance |
Timeline |
Mgame Corp |
Husteel |
Mgame Corp and Husteel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mgame Corp and Husteel
The main advantage of trading using opposite Mgame Corp and Husteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Husteel 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 Husteel will offset losses from the drop in Husteel's long position.Mgame Corp vs. AptaBio Therapeutics | Mgame Corp vs. Daewoo SBI SPAC | Mgame Corp vs. Dream Security co | Mgame Corp vs. Microfriend |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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