Correlation Between PACIFIC ONLINE and GungHo Online
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE and GungHo Online 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 PACIFIC ONLINE and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and GungHo Online Entertainment, you can compare the effects of market volatilities on PACIFIC ONLINE and GungHo Online 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 PACIFIC ONLINE with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and GungHo Online.
Diversification Opportunities for PACIFIC ONLINE and GungHo Online
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and GungHo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and PACIFIC ONLINE 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 PACIFIC ONLINE are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of PACIFIC ONLINE i.e., PACIFIC ONLINE and GungHo Online go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and GungHo Online
If you would invest 15.00 in PACIFIC ONLINE on August 30, 2024 and sell it today you would earn a total of 0.00 from holding PACIFIC ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PACIFIC ONLINE vs. GungHo Online Entertainment
Performance |
| Timeline |
| PACIFIC ONLINE |
| GungHo Online Entert |
PACIFIC ONLINE and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and GungHo Online
The main advantage of trading using opposite PACIFIC ONLINE and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| PACIFIC ONLINE vs. NorAm Drilling AS | PACIFIC ONLINE vs. Summit Materials | PACIFIC ONLINE vs. Materialise NV | PACIFIC ONLINE vs. Mitsubishi Materials |
| GungHo Online vs. Texas Roadhouse | GungHo Online vs. TITANIUM TRANSPORTGROUP | GungHo Online vs. SCANDMEDICAL SOLDK 040 | GungHo Online vs. NTG Nordic Transport |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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