Correlation Between Mgame Corp and Raontech
Can any of the company-specific risk be diversified away by investing in both Mgame Corp and Raontech 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 Raontech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Raontech, you can compare the effects of market volatilities on Mgame Corp and Raontech 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 Raontech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Raontech.
Diversification Opportunities for Mgame Corp and Raontech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mgame and Raontech is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Raontech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raontech 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 Raontech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raontech has no effect on the direction of Mgame Corp i.e., Mgame Corp and Raontech go up and down completely randomly.
Pair Corralation between Mgame Corp and Raontech
Assuming the 90 days trading horizon Mgame Corp is expected to under-perform the Raontech. But the stock apears to be less risky and, when comparing its historical volatility, Mgame Corp is 1.83 times less risky than Raontech. The stock trades about -0.02 of its potential returns per unit of risk. The Raontech is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 542,000 in Raontech on October 14, 2024 and sell it today you would lose (154,500) from holding Raontech or give up 28.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.86% |
| Values | Daily Returns |
Mgame Corp vs. Raontech
Performance |
| Timeline |
| Mgame Corp |
| Raontech |
Mgame Corp and Raontech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Raontech
The main advantage of trading using opposite Mgame Corp and Raontech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp position performs unexpectedly, Raontech 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 Raontech will offset losses from the drop in Raontech's long position.| Mgame Corp vs. ABOV Semiconductor Co | Mgame Corp vs. Kakao Games Corp | Mgame Corp vs. Samsung Life Insurance | Mgame Corp vs. Daesung Industrial Co |
| Raontech vs. Cheryong Industrial CoLtd | Raontech vs. Daiyang Metal Co | Raontech vs. Dongil Metal Co | Raontech vs. Mgame Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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