Correlation Between Chinese Gamer and GameSparcs
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer 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 Chinese Gamer and GameSparcs 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 GameSparcs Co, you can compare the effects of market volatilities on Chinese Gamer 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 Chinese Gamer with a short position of GameSparcs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and GameSparcs.
Diversification Opportunities for Chinese Gamer and GameSparcs
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and GameSparcs is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and GameSparcs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSparcs 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 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 Chinese Gamer i.e., Chinese Gamer and GameSparcs go up and down completely randomly.
Pair Corralation between Chinese Gamer and GameSparcs
Assuming the 90 days trading horizon Chinese Gamer International is expected to generate 0.31 times more return on investment than GameSparcs. However, Chinese Gamer International is 3.21 times less risky than GameSparcs. It trades about 0.01 of its potential returns per unit of risk. GameSparcs Co is currently generating about -0.01 per unit of risk. If you would invest 4,510 in Chinese Gamer International on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Chinese Gamer International or generate 0.0% 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. GameSparcs Co
Performance |
| Timeline |
| Chinese Gamer Intern |
| GameSparcs |
Chinese Gamer and GameSparcs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Gamer and GameSparcs
The main advantage of trading using opposite Chinese Gamer and GameSparcs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer 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.| Chinese Gamer vs. YuantaP shares Taiwan Electronics | Chinese Gamer vs. YuantaP shares Taiwan Mid Cap | Chinese Gamer vs. Fubon MSCI Taiwan | Chinese Gamer vs. YuantaP shares Taiwan Top |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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