Correlation Between Puloon Technology and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Puloon 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 Puloon 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 Puloon Technology and Mgame Corp, you can compare the effects of market volatilities on Puloon 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 Puloon Technology with a short position of Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and Mgame Corp.
Diversification Opportunities for Puloon Technology and Mgame Corp
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puloon and Mgame is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame Corp and Puloon 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 Puloon Technology 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 Puloon Technology i.e., Puloon Technology and Mgame Corp go up and down completely randomly.
Pair Corralation between Puloon Technology and Mgame Corp
Assuming the 90 days trading horizon Puloon Technology is expected to generate 1.61 times more return on investment than Mgame Corp. However, Puloon Technology is 1.61 times more volatile than Mgame Corp. It trades about 0.09 of its potential returns per unit of risk. Mgame Corp is currently generating about 0.0 per unit of risk. If you would invest 671,048 in Puloon Technology on October 30, 2024 and sell it today you would earn a total of 82,952 from holding Puloon Technology or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puloon Technology vs. Mgame Corp
Performance |
| Timeline |
| Puloon Technology |
| Mgame Corp |
Puloon Technology and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and Mgame Corp
The main advantage of trading using opposite Puloon Technology and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon 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.| Puloon Technology vs. KB Financial Group | Puloon Technology vs. Hanmi Semiconductor Co | Puloon Technology vs. ITM Semiconductor Co | Puloon Technology vs. Korean Reinsurance Co |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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