Correlation Between Ruentex Engineering and GAME HOURS
Can any of the company-specific risk be diversified away by investing in both Ruentex Engineering and GAME HOURS 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 Ruentex Engineering and GAME HOURS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ruentex Engineering Construction and GAME HOURS, you can compare the effects of market volatilities on Ruentex Engineering and GAME HOURS 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 Ruentex Engineering with a short position of GAME HOURS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruentex Engineering and GAME HOURS.
Diversification Opportunities for Ruentex Engineering and GAME HOURS
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ruentex and GAME is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Engineering Constructi and GAME HOURS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAME HOURS and Ruentex Engineering 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 Ruentex Engineering Construction are associated (or correlated) with GAME HOURS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAME HOURS has no effect on the direction of Ruentex Engineering i.e., Ruentex Engineering and GAME HOURS go up and down completely randomly.
Pair Corralation between Ruentex Engineering and GAME HOURS
Assuming the 90 days trading horizon Ruentex Engineering is expected to generate 101.84 times less return on investment than GAME HOURS. But when comparing it to its historical volatility, Ruentex Engineering Construction is 38.74 times less risky than GAME HOURS. It trades about 0.03 of its potential returns per unit of risk. GAME HOURS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,908 in GAME HOURS on October 7, 2024 and sell it today you would lose (2,093) from holding GAME HOURS or give up 53.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ruentex Engineering Constructi vs. GAME HOURS
Performance |
| Timeline |
| Ruentex Engineering |
| GAME HOURS |
Ruentex Engineering and GAME HOURS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ruentex Engineering and GAME HOURS
The main advantage of trading using opposite Ruentex Engineering and GAME HOURS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruentex Engineering position performs unexpectedly, GAME HOURS 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 GAME HOURS will offset losses from the drop in GAME HOURS's long position.| Ruentex Engineering vs. Hota Industrial Mfg | Ruentex Engineering vs. Sinbon Electronics Co | Ruentex Engineering vs. Tong Hsing Electronic | Ruentex Engineering vs. Flexium Interconnect |
| GAME HOURS vs. First Hotel Co | GAME HOURS vs. Far EasTone Telecommunications | GAME HOURS vs. TWOWAY Communications | GAME HOURS vs. Tainet Communication System |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |