Correlation Between Mgame Corp and Jin Air
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Jin Air 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 Jin Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Jin Air Co, you can compare the effects of market volatilities on Mgame Corp and Jin Air 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Jin Air.
Diversification Opportunities for Mgame Corp and Jin Air
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mgame and Jin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Mgame Corp i.e., Mgame Corp and Jin Air go up and down completely randomly.
Pair Corralation between Mgame Corp and Jin Air
Assuming the 90 days trading horizon Mgame Corp is expected to generate 1.18 times more return on investment than Jin Air. However, Mgame Corp is 1.18 times more volatile than Jin Air Co. It trades about -0.01 of its potential returns per unit of risk. Jin Air Co is currently generating about -0.07 per unit of risk. If you would invest 576,529 in Mgame Corp on October 13, 2024 and sell it today you would lose (53,529) from holding Mgame Corp or give up 9.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mgame Corp vs. Jin Air Co
Performance |
| Timeline |
| Mgame Corp |
| Jin Air |
Mgame Corp and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Jin Air
The main advantage of trading using opposite Mgame Corp and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| Mgame Corp vs. AptaBio Therapeutics | Mgame Corp vs. Daewoo SBI SPAC | Mgame Corp vs. Dream Security co | Mgame Corp vs. Microfriend |
| Jin Air vs. Eugene Technology CoLtd | Jin Air vs. Mgame Corp | Jin Air vs. EV Advanced Material | Jin Air vs. Dongil Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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