Correlation Between Gamania Digital and Air Asia
Can any of the company-specific risk be diversified away by investing in both Gamania Digital and Air Asia 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 Gamania Digital and Air Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamania Digital Entertainment and Air Asia Co, you can compare the effects of market volatilities on Gamania Digital and Air Asia 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 Gamania Digital with a short position of Air Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamania Digital and Air Asia.
Diversification Opportunities for Gamania Digital and Air Asia
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamania and Air is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gamania Digital Entertainment and Air Asia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Asia and Gamania Digital 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 Gamania Digital Entertainment are associated (or correlated) with Air Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Asia has no effect on the direction of Gamania Digital i.e., Gamania Digital and Air Asia go up and down completely randomly.
Pair Corralation between Gamania Digital and Air Asia
Assuming the 90 days trading horizon Gamania Digital is expected to generate 2.37 times less return on investment than Air Asia. But when comparing it to its historical volatility, Gamania Digital Entertainment is 1.8 times less risky than Air Asia. It trades about 0.05 of its potential returns per unit of risk. Air Asia Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,528 in Air Asia Co on September 3, 2024 and sell it today you would earn a total of 1,502 from holding Air Asia Co or generate 98.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamania Digital Entertainment vs. Air Asia Co
Performance |
| Timeline |
| Gamania Digital Ente |
| Air Asia |
Gamania Digital and Air Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamania Digital and Air Asia
The main advantage of trading using opposite Gamania Digital and Air Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamania Digital position performs unexpectedly, Air Asia 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 Air Asia will offset losses from the drop in Air Asia's long position.| Gamania Digital vs. Soft World International | Gamania Digital vs. Chinese Gamer International | Gamania Digital vs. Userjoy Technology Co |
| Air Asia vs. Eva Airways Corp | Air Asia vs. Taiwan High Speed | Air Asia vs. China Airlines | Air Asia vs. Formosa Plastics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |