Correlation Between SYSTEMAIR and GungHo Online
Can any of the company-specific risk be diversified away by investing in both SYSTEMAIR 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 SYSTEMAIR and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SYSTEMAIR AB and GungHo Online Entertainment, you can compare the effects of market volatilities on SYSTEMAIR 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 SYSTEMAIR with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSTEMAIR and GungHo Online.
Diversification Opportunities for SYSTEMAIR and GungHo Online
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SYSTEMAIR and GungHo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SYSTEMAIR AB 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 SYSTEMAIR 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 SYSTEMAIR AB 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 SYSTEMAIR i.e., SYSTEMAIR and GungHo Online go up and down completely randomly.
Pair Corralation between SYSTEMAIR and GungHo Online
Assuming the 90 days trading horizon SYSTEMAIR AB is expected to generate 0.83 times more return on investment than GungHo Online. However, SYSTEMAIR AB is 1.2 times less risky than GungHo Online. It trades about 0.11 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.01 per unit of risk. If you would invest 692.00 in SYSTEMAIR AB on September 3, 2024 and sell it today you would earn a total of 90.00 from holding SYSTEMAIR AB or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SYSTEMAIR AB vs. GungHo Online Entertainment
Performance |
| Timeline |
| SYSTEMAIR AB |
| GungHo Online Entert |
SYSTEMAIR and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYSTEMAIR and GungHo Online
The main advantage of trading using opposite SYSTEMAIR and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSTEMAIR 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.| SYSTEMAIR vs. SAFETY MEDICAL PROD | SYSTEMAIR vs. THORNEY TECHS LTD | SYSTEMAIR vs. RCM TECHNOLOGIES | SYSTEMAIR vs. Microbot Medical |
| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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