Correlation Between Eugene Technology and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and Mgame Corp 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 Eugene Technology and Mgame Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and Mgame Corp, you can compare the effects of market volatilities on Eugene Technology and Mgame Corp 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 Eugene Technology with a short position of Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Mgame Corp.
Diversification Opportunities for Eugene Technology and Mgame Corp
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eugene and Mgame is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame Corp and Eugene Technology 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 Eugene Technology CoLtd are associated (or correlated) with Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of Eugene Technology i.e., Eugene Technology and Mgame Corp go up and down completely randomly.
Pair Corralation between Eugene Technology and Mgame Corp
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 1.39 times more return on investment than Mgame Corp. However, Eugene Technology is 1.39 times more volatile than Mgame Corp. It trades about 0.14 of its potential returns per unit of risk. Mgame Corp is currently generating about 0.0 per unit of risk. If you would invest 3,340,000 in Eugene Technology CoLtd on October 30, 2024 and sell it today you would earn a total of 615,000 from holding Eugene Technology CoLtd or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. Mgame Corp
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Mgame Corp |
Eugene Technology and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Mgame Corp
The main advantage of trading using opposite Eugene Technology and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp's long position.| Eugene Technology vs. Hotel Shilla Co | Eugene Technology vs. ENF Technology Co | Eugene Technology vs. Mobile Appliance | Eugene Technology vs. Woori Technology |
| Mgame Corp vs. PJ Metal Co | Mgame Corp vs. Kbi Metal Co | Mgame Corp vs. Lotte Data Communication | Mgame Corp vs. Neungyule Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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