Correlation Between Bank of Kaohsiung and GameSparcs
Can any of the company-specific risk be diversified away by investing in both Bank of Kaohsiung and GameSparcs 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 Bank of Kaohsiung and GameSparcs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Kaohsiung and GameSparcs Co, you can compare the effects of market volatilities on Bank of Kaohsiung and GameSparcs 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 Bank of Kaohsiung with a short position of GameSparcs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Kaohsiung and GameSparcs.
Diversification Opportunities for Bank of Kaohsiung and GameSparcs
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and GameSparcs is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Kaohsiung and GameSparcs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSparcs and Bank of Kaohsiung 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 Bank of Kaohsiung are associated (or correlated) with GameSparcs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSparcs has no effect on the direction of Bank of Kaohsiung i.e., Bank of Kaohsiung and GameSparcs go up and down completely randomly.
Pair Corralation between Bank of Kaohsiung and GameSparcs
Assuming the 90 days trading horizon Bank of Kaohsiung is expected to generate 0.14 times more return on investment than GameSparcs. However, Bank of Kaohsiung is 7.01 times less risky than GameSparcs. It trades about 0.0 of its potential returns per unit of risk. GameSparcs Co is currently generating about -0.01 per unit of risk. If you would invest 1,170 in Bank of Kaohsiung on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Bank of Kaohsiung or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Kaohsiung vs. GameSparcs Co
Performance |
| Timeline |
| Bank of Kaohsiung |
| GameSparcs |
Bank of Kaohsiung and GameSparcs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Kaohsiung and GameSparcs
The main advantage of trading using opposite Bank of Kaohsiung and GameSparcs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Kaohsiung position performs unexpectedly, GameSparcs 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 GameSparcs will offset losses from the drop in GameSparcs' long position.| Bank of Kaohsiung vs. Union Bank of | Bank of Kaohsiung vs. Chang Hwa Commercial | Bank of Kaohsiung vs. EnTie Commercial Bank | Bank of Kaohsiung vs. Taiwan Business Bank |
| GameSparcs vs. TWOWAY Communications | GameSparcs vs. Bank of Kaohsiung | GameSparcs vs. Taiwan Mobile Co | GameSparcs vs. Cameo Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |