Correlation Between Gamania Digital and Kenmec Mechanical
Can any of the company-specific risk be diversified away by investing in both Gamania Digital and Kenmec Mechanical 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 Kenmec Mechanical 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 Kenmec Mechanical Engineering, you can compare the effects of market volatilities on Gamania Digital and Kenmec Mechanical 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 Kenmec Mechanical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamania Digital and Kenmec Mechanical.
Diversification Opportunities for Gamania Digital and Kenmec Mechanical
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamania and Kenmec is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gamania Digital Entertainment and Kenmec Mechanical Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenmec Mechanical 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 Kenmec Mechanical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenmec Mechanical has no effect on the direction of Gamania Digital i.e., Gamania Digital and Kenmec Mechanical go up and down completely randomly.
Pair Corralation between Gamania Digital and Kenmec Mechanical
Assuming the 90 days trading horizon Gamania Digital Entertainment is expected to generate 0.88 times more return on investment than Kenmec Mechanical. However, Gamania Digital Entertainment is 1.14 times less risky than Kenmec Mechanical. It trades about -0.01 of its potential returns per unit of risk. Kenmec Mechanical Engineering is currently generating about -0.07 per unit of risk. If you would invest 8,200 in Gamania Digital Entertainment on September 12, 2024 and sell it today you would lose (60.00) from holding Gamania Digital Entertainment or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamania Digital Entertainment vs. Kenmec Mechanical Engineering
Performance |
| Timeline |
| Gamania Digital Ente |
| Kenmec Mechanical |
Gamania Digital and Kenmec Mechanical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamania Digital and Kenmec Mechanical
The main advantage of trading using opposite Gamania Digital and Kenmec Mechanical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamania Digital position performs unexpectedly, Kenmec Mechanical 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 Kenmec Mechanical will offset losses from the drop in Kenmec Mechanical's long position.| Gamania Digital vs. International Games System | Gamania Digital vs. Softstar Entertainment | Gamania Digital vs. X Legend Entertainment Co | Gamania Digital vs. GameSparcs Co |
| Kenmec Mechanical vs. U Tech Media Corp | Kenmec Mechanical vs. Wei Chuan Foods | Kenmec Mechanical vs. Cowealth Medical Holding | Kenmec Mechanical vs. Gamania Digital Entertainment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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