Correlation Between Mgame Corp and Synopex
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Synopex 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 Synopex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Synopex, you can compare the effects of market volatilities on Mgame Corp and Synopex 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 Synopex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Synopex.
Diversification Opportunities for Mgame Corp and Synopex
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mgame and Synopex is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Synopex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopex 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 Synopex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopex has no effect on the direction of Mgame Corp i.e., Mgame Corp and Synopex go up and down completely randomly.
Pair Corralation between Mgame Corp and Synopex
Assuming the 90 days trading horizon Mgame Corp is expected to under-perform the Synopex. But the stock apears to be less risky and, when comparing its historical volatility, Mgame Corp is 2.11 times less risky than Synopex. The stock trades about -0.01 of its potential returns per unit of risk. The Synopex is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 375,714 in Synopex on September 12, 2024 and sell it today you would earn a total of 234,286 from holding Synopex or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.8% |
| Values | Daily Returns |
Mgame Corp vs. Synopex
Performance |
| Timeline |
| Mgame Corp |
| Synopex |
Mgame Corp and Synopex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Synopex
The main advantage of trading using opposite Mgame Corp and Synopex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Synopex 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 Synopex will offset losses from the drop in Synopex's long position.| Mgame Corp vs. Samsung Electronics Co | Mgame Corp vs. Samsung Electronics Co | Mgame Corp vs. SK Hynix | Mgame Corp vs. POSCO Holdings |
| Synopex vs. Infinitt Healthcare Co | Synopex vs. Mgame Corp | Synopex vs. Netmarble Games Corp | Synopex vs. Next Entertainment World |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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