Correlation Between Mgame Corp and CG Hi
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and CG Hi 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 CG Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and CG Hi Tech, you can compare the effects of market volatilities on Mgame Corp and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and CG Hi.
Diversification Opportunities for Mgame Corp and CG Hi
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mgame and 264660 is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of Mgame Corp i.e., Mgame Corp and CG Hi go up and down completely randomly.
Pair Corralation between Mgame Corp and CG Hi
Assuming the 90 days trading horizon Mgame Corp is expected to under-perform the CG Hi. In addition to that, Mgame Corp is 1.07 times more volatile than CG Hi Tech. It trades about -0.03 of its total potential returns per unit of risk. CG Hi Tech is currently generating about 0.0 per unit of volatility. If you would invest 1,124,375 in CG Hi Tech on September 2, 2024 and sell it today you would lose (136,375) from holding CG Hi Tech or give up 12.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mgame Corp vs. CG Hi Tech
Performance |
| Timeline |
| Mgame Corp |
| CG Hi Tech |
Mgame Corp and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and CG Hi
The main advantage of trading using opposite Mgame Corp and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.| Mgame Corp vs. AptaBio Therapeutics | Mgame Corp vs. Daewoo SBI SPAC | Mgame Corp vs. Dream Security co | Mgame Corp vs. Microfriend |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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