Correlation Between AWILCO DRILLING and GungHo Online
Can any of the company-specific risk be diversified away by investing in both AWILCO DRILLING and GungHo Online 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 AWILCO DRILLING and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AWILCO DRILLING PLC and GungHo Online Entertainment, you can compare the effects of market volatilities on AWILCO DRILLING and GungHo Online 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 AWILCO DRILLING with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of AWILCO DRILLING and GungHo Online.
Diversification Opportunities for AWILCO DRILLING and GungHo Online
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AWILCO and GungHo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AWILCO DRILLING PLC and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and AWILCO DRILLING 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 AWILCO DRILLING PLC are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of AWILCO DRILLING i.e., AWILCO DRILLING and GungHo Online go up and down completely randomly.
Pair Corralation between AWILCO DRILLING and GungHo Online
Assuming the 90 days trading horizon AWILCO DRILLING PLC is expected to generate 2.32 times more return on investment than GungHo Online. However, AWILCO DRILLING is 2.32 times more volatile than GungHo Online Entertainment. It trades about 0.05 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.05 per unit of risk. If you would invest 142.00 in AWILCO DRILLING PLC on September 3, 2024 and sell it today you would earn a total of 52.00 from holding AWILCO DRILLING PLC or generate 36.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AWILCO DRILLING PLC vs. GungHo Online Entertainment
Performance |
| Timeline |
| AWILCO DRILLING PLC |
| GungHo Online Entert |
AWILCO DRILLING and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AWILCO DRILLING and GungHo Online
The main advantage of trading using opposite AWILCO DRILLING and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AWILCO DRILLING position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| AWILCO DRILLING vs. Unity Software | AWILCO DRILLING vs. Sims Metal Management | AWILCO DRILLING vs. CVS Health | AWILCO DRILLING vs. National Health Investors |
| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |