Correlation Between SHIP HEALTHCARE and GungHo Online
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and GungHo Online Entertainment, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and GungHo Online.
Diversification Opportunities for SHIP HEALTHCARE and GungHo Online
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SHIP and GungHo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and GungHo Online go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and GungHo Online
Assuming the 90 days horizon SHIP HEALTHCARE HLDGINC is expected to generate 0.92 times more return on investment than GungHo Online. However, SHIP HEALTHCARE HLDGINC is 1.09 times less risky than GungHo Online. It trades about 0.24 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.02 per unit of risk. If you would invest 1,260 in SHIP HEALTHCARE HLDGINC on September 14, 2024 and sell it today you would earn a total of 90.00 from holding SHIP HEALTHCARE HLDGINC or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. GungHo Online Entertainment
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| GungHo Online Entert |
SHIP HEALTHCARE and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and GungHo Online
The main advantage of trading using opposite SHIP HEALTHCARE and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. Superior Plus Corp | SHIP HEALTHCARE vs. NMI Holdings | SHIP HEALTHCARE vs. SIVERS SEMICONDUCTORS AB | SHIP HEALTHCARE vs. NorAm Drilling AS |
| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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