Correlation Between GemVaxKAEL CoLtd and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both GemVaxKAEL CoLtd and PLAYWITH 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 GemVaxKAEL CoLtd and PLAYWITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GemVaxKAEL CoLtd and PLAYWITH, you can compare the effects of market volatilities on GemVaxKAEL CoLtd and PLAYWITH 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 GemVaxKAEL CoLtd with a short position of PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GemVaxKAEL CoLtd and PLAYWITH.
Diversification Opportunities for GemVaxKAEL CoLtd and PLAYWITH
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GemVaxKAEL and PLAYWITH is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GemVaxKAEL CoLtd and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH and GemVaxKAEL CoLtd 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 GemVaxKAEL CoLtd are associated (or correlated) with PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of GemVaxKAEL CoLtd i.e., GemVaxKAEL CoLtd and PLAYWITH go up and down completely randomly.
Pair Corralation between GemVaxKAEL CoLtd and PLAYWITH
Assuming the 90 days trading horizon GemVaxKAEL CoLtd is expected to generate 1.37 times more return on investment than PLAYWITH. However, GemVaxKAEL CoLtd is 1.37 times more volatile than PLAYWITH. It trades about 0.1 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.09 per unit of risk. If you would invest 1,163,000 in GemVaxKAEL CoLtd on September 3, 2024 and sell it today you would earn a total of 707,000 from holding GemVaxKAEL CoLtd or generate 60.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GemVaxKAEL CoLtd vs. PLAYWITH
Performance |
| Timeline |
| GemVaxKAEL CoLtd |
| PLAYWITH |
GemVaxKAEL CoLtd and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GemVaxKAEL CoLtd and PLAYWITH
The main advantage of trading using opposite GemVaxKAEL CoLtd and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GemVaxKAEL CoLtd position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| GemVaxKAEL CoLtd vs. Ssangyong Information Communication | GemVaxKAEL CoLtd vs. Lotte Data Communication | GemVaxKAEL CoLtd vs. Infinitt Healthcare Co | GemVaxKAEL CoLtd vs. Tway Air Co |
| PLAYWITH vs. Korea New Network | PLAYWITH vs. ICD Co | PLAYWITH vs. DYPNF CoLtd | PLAYWITH vs. Busan Industrial 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |