Correlation Between Ibase Gaming and Bank of Kaohsiung
Can any of the company-specific risk be diversified away by investing in both Ibase Gaming and Bank of Kaohsiung 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 Ibase Gaming and Bank of Kaohsiung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibase Gaming and Bank of Kaohsiung, you can compare the effects of market volatilities on Ibase Gaming and Bank of Kaohsiung 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 Ibase Gaming with a short position of Bank of Kaohsiung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibase Gaming and Bank of Kaohsiung.
Diversification Opportunities for Ibase Gaming and Bank of Kaohsiung
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ibase and Bank is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ibase Gaming and Bank of Kaohsiung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Kaohsiung and Ibase Gaming 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 Ibase Gaming are associated (or correlated) with Bank of Kaohsiung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Kaohsiung has no effect on the direction of Ibase Gaming i.e., Ibase Gaming and Bank of Kaohsiung go up and down completely randomly.
Pair Corralation between Ibase Gaming and Bank of Kaohsiung
Assuming the 90 days trading horizon Ibase Gaming is expected to under-perform the Bank of Kaohsiung. In addition to that, Ibase Gaming is 2.73 times more volatile than Bank of Kaohsiung. It trades about -0.04 of its total potential returns per unit of risk. Bank of Kaohsiung is currently generating about -0.01 per unit of volatility. If you would invest 1,245 in Bank of Kaohsiung on August 28, 2024 and sell it today you would lose (65.00) from holding Bank of Kaohsiung or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ibase Gaming vs. Bank of Kaohsiung
Performance |
| Timeline |
| Ibase Gaming |
| Bank of Kaohsiung |
Ibase Gaming and Bank of Kaohsiung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibase Gaming and Bank of Kaohsiung
The main advantage of trading using opposite Ibase Gaming and Bank of Kaohsiung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibase Gaming position performs unexpectedly, Bank of Kaohsiung 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 Bank of Kaohsiung will offset losses from the drop in Bank of Kaohsiung's long position.| Ibase Gaming vs. Shiny Chemical Industrial | Ibase Gaming vs. Cameo Communications | Ibase Gaming vs. Taita Chemical Co | Ibase Gaming vs. Jinan Acetate Chemical |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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