Correlation Between Mgame Corp and Wooyang
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Wooyang 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 Wooyang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Wooyang Co, you can compare the effects of market volatilities on Mgame Corp and Wooyang 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 Wooyang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Wooyang.
Diversification Opportunities for Mgame Corp and Wooyang
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mgame and Wooyang is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Wooyang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wooyang 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 Wooyang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wooyang has no effect on the direction of Mgame Corp i.e., Mgame Corp and Wooyang go up and down completely randomly.
Pair Corralation between Mgame Corp and Wooyang
Assuming the 90 days trading horizon Mgame Corp is expected to generate 0.65 times more return on investment than Wooyang. However, Mgame Corp is 1.54 times less risky than Wooyang. It trades about 0.03 of its potential returns per unit of risk. Wooyang Co is currently generating about -0.11 per unit of risk. If you would invest 554,000 in Mgame Corp on August 29, 2024 and sell it today you would earn a total of 27,000 from holding Mgame Corp or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Mgame Corp vs. Wooyang Co
Performance |
| Timeline |
| Mgame Corp |
| Wooyang |
Mgame Corp and Wooyang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Wooyang
The main advantage of trading using opposite Mgame Corp and Wooyang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Wooyang 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 Wooyang will offset losses from the drop in Wooyang's long position.| Mgame Corp vs. AptaBio Therapeutics | Mgame Corp vs. Daewoo SBI SPAC | Mgame Corp vs. Dream Security co | Mgame Corp vs. Microfriend |
| Wooyang vs. Miwon Chemicals Co | Wooyang vs. Golden Bridge Investment | Wooyang vs. Mgame Corp | Wooyang vs. Atinum Investment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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