Correlation Between Userjoy Technology and GAME HOURS
Can any of the company-specific risk be diversified away by investing in both Userjoy Technology and GAME HOURS 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 GAME HOURS 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 GAME HOURS, you can compare the effects of market volatilities on Userjoy Technology and GAME HOURS 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 GAME HOURS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Userjoy Technology and GAME HOURS.
Diversification Opportunities for Userjoy Technology and GAME HOURS
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Userjoy and GAME is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Userjoy Technology Co and GAME HOURS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAME HOURS 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 GAME HOURS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAME HOURS has no effect on the direction of Userjoy Technology i.e., Userjoy Technology and GAME HOURS go up and down completely randomly.
Pair Corralation between Userjoy Technology and GAME HOURS
Assuming the 90 days trading horizon Userjoy Technology is expected to generate 17.79 times less return on investment than GAME HOURS. But when comparing it to its historical volatility, Userjoy Technology Co is 8.03 times less risky than GAME HOURS. It trades about 0.04 of its potential returns per unit of risk. GAME HOURS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,896 in GAME HOURS on November 28, 2024 and sell it today you would lose (3,806) from holding GAME HOURS or give up 77.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Userjoy Technology Co vs. GAME HOURS
Performance |
| Timeline |
| Userjoy Technology |
| GAME HOURS |
Userjoy Technology and GAME HOURS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Userjoy Technology and GAME HOURS
The main advantage of trading using opposite Userjoy Technology and GAME HOURS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Userjoy Technology position performs unexpectedly, GAME HOURS 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 GAME HOURS will offset losses from the drop in GAME HOURS'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 |
| GAME HOURS vs. International Games System | GAME HOURS vs. Gamania Digital Entertainment | GAME HOURS vs. Soft World International | GAME HOURS vs. Softstar Entertainment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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