Correlation Between Cayman Tung and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Cayman Tung and Ibase Gaming 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 Cayman Tung and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cayman Tung Ling and Ibase Gaming, you can compare the effects of market volatilities on Cayman Tung and Ibase Gaming 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 Cayman Tung with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cayman Tung and Ibase Gaming.
Diversification Opportunities for Cayman Tung and Ibase Gaming
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cayman and Ibase is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cayman Tung Ling and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and Cayman Tung 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 Cayman Tung Ling are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Cayman Tung i.e., Cayman Tung and Ibase Gaming go up and down completely randomly.
Pair Corralation between Cayman Tung and Ibase Gaming
Assuming the 90 days trading horizon Cayman Tung Ling is expected to generate 1.27 times more return on investment than Ibase Gaming. However, Cayman Tung is 1.27 times more volatile than Ibase Gaming. It trades about 0.01 of its potential returns per unit of risk. Ibase Gaming is currently generating about 0.0 per unit of risk. If you would invest 3,595 in Cayman Tung Ling on August 24, 2024 and sell it today you would lose (175.00) from holding Cayman Tung Ling or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cayman Tung Ling vs. Ibase Gaming
Performance |
| Timeline |
| Cayman Tung Ling |
| Ibase Gaming |
Cayman Tung and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cayman Tung and Ibase Gaming
The main advantage of trading using opposite Cayman Tung and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cayman Tung position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| Cayman Tung vs. Carnival Industrial Corp | Cayman Tung vs. Les Enphants Co | Cayman Tung vs. YuantaP shares Taiwan Top | Cayman Tung vs. YuantaP shares Taiwan Electronics |
| Ibase Gaming vs. Cayman Tung Ling | Ibase Gaming vs. Hsing Ta Cement | Ibase Gaming vs. Bank of Kaohsiung | Ibase Gaming vs. Hi Sharp Electronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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