Correlation Between Userjoy Technology and Chinese Gamer
Can any of the company-specific risk be diversified away by investing in both Userjoy Technology and Chinese Gamer 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 Userjoy Technology and Chinese Gamer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Userjoy Technology Co and Chinese Gamer International, you can compare the effects of market volatilities on Userjoy Technology and Chinese Gamer 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 Userjoy Technology with a short position of Chinese Gamer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Userjoy Technology and Chinese Gamer.
Diversification Opportunities for Userjoy Technology and Chinese Gamer
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Userjoy and Chinese is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Userjoy Technology Co and Chinese Gamer International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Gamer Intern and Userjoy Technology 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 Userjoy Technology Co are associated (or correlated) with Chinese Gamer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Gamer Intern has no effect on the direction of Userjoy Technology i.e., Userjoy Technology and Chinese Gamer go up and down completely randomly.
Pair Corralation between Userjoy Technology and Chinese Gamer
Assuming the 90 days trading horizon Userjoy Technology Co is expected to generate 0.66 times more return on investment than Chinese Gamer. However, Userjoy Technology Co is 1.51 times less risky than Chinese Gamer. It trades about -0.08 of its potential returns per unit of risk. Chinese Gamer International is currently generating about -0.08 per unit of risk. If you would invest 7,860 in Userjoy Technology Co on October 25, 2024 and sell it today you would lose (340.00) from holding Userjoy Technology Co or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Userjoy Technology Co vs. Chinese Gamer International
Performance |
| Timeline |
| Userjoy Technology |
| Chinese Gamer Intern |
Userjoy Technology and Chinese Gamer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Userjoy Technology and Chinese Gamer
The main advantage of trading using opposite Userjoy Technology and Chinese Gamer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Userjoy Technology position performs unexpectedly, Chinese Gamer 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 Chinese Gamer will offset losses from the drop in Chinese Gamer's long position.| Userjoy Technology vs. Gamania Digital Entertainment | Userjoy Technology vs. Soft World International | Userjoy Technology vs. Chinese Gamer International | Userjoy Technology vs. International Games System |
| Chinese Gamer vs. Unitech Computer Co | Chinese Gamer vs. RiTdisplay Corp | Chinese Gamer vs. Tainet Communication System | Chinese Gamer vs. Hannstar Display Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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