Correlation Between Gamania Digital and Jinan Acetate
Can any of the company-specific risk be diversified away by investing in both Gamania Digital and Jinan Acetate 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 Jinan Acetate 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 Jinan Acetate Chemical, you can compare the effects of market volatilities on Gamania Digital and Jinan Acetate 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 Jinan Acetate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamania Digital and Jinan Acetate.
Diversification Opportunities for Gamania Digital and Jinan Acetate
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamania and Jinan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gamania Digital Entertainment and Jinan Acetate Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinan Acetate Chemical 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 Jinan Acetate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinan Acetate Chemical has no effect on the direction of Gamania Digital i.e., Gamania Digital and Jinan Acetate go up and down completely randomly.
Pair Corralation between Gamania Digital and Jinan Acetate
Assuming the 90 days trading horizon Gamania Digital is expected to generate 4.57 times less return on investment than Jinan Acetate. But when comparing it to its historical volatility, Gamania Digital Entertainment is 2.16 times less risky than Jinan Acetate. It trades about 0.05 of its potential returns per unit of risk. Jinan Acetate Chemical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16,912 in Jinan Acetate Chemical on September 3, 2024 and sell it today you would earn a total of 71,988 from holding Jinan Acetate Chemical or generate 425.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamania Digital Entertainment vs. Jinan Acetate Chemical
Performance |
| Timeline |
| Gamania Digital Ente |
| Jinan Acetate Chemical |
Gamania Digital and Jinan Acetate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamania Digital and Jinan Acetate
The main advantage of trading using opposite Gamania Digital and Jinan Acetate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamania Digital position performs unexpectedly, Jinan Acetate 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 Jinan Acetate will offset losses from the drop in Jinan Acetate's long position.| Gamania Digital vs. Soft World International | Gamania Digital vs. International Games System | Gamania Digital vs. Softstar Entertainment | Gamania Digital vs. Chinese Gamer International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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