Correlation Between Chinese Gamer and U Ming
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer and U Ming 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 Chinese Gamer and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Gamer International and U Ming Marine Transport, you can compare the effects of market volatilities on Chinese Gamer and U Ming 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 Chinese Gamer with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and U Ming.
Diversification Opportunities for Chinese Gamer and U Ming
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and 2606 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and U Ming Marine Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Ming Marine and Chinese Gamer 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 Chinese Gamer International are associated (or correlated) with U Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Ming Marine has no effect on the direction of Chinese Gamer i.e., Chinese Gamer and U Ming go up and down completely randomly.
Pair Corralation between Chinese Gamer and U Ming
Assuming the 90 days trading horizon Chinese Gamer International is expected to under-perform the U Ming. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Gamer International is 2.17 times less risky than U Ming. The stock trades about -0.04 of its potential returns per unit of risk. The U Ming Marine Transport is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,380 in U Ming Marine Transport on October 24, 2024 and sell it today you would earn a total of 330.00 from holding U Ming Marine Transport or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Gamer International vs. U Ming Marine Transport
Performance |
| Timeline |
| Chinese Gamer Intern |
| U Ming Marine |
Chinese Gamer and U Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Gamer and U Ming
The main advantage of trading using opposite Chinese Gamer and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer position performs unexpectedly, U Ming 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 U Ming will offset losses from the drop in U Ming's long position.| Chinese Gamer vs. Yuanta Financial Holdings | Chinese Gamer vs. Shinkong Insurance Co | Chinese Gamer vs. Louisa Professional Coffee | Chinese Gamer vs. TWOWAY Communications |
| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |