Correlation Between Ibase Gaming and Kunyue Development
Can any of the company-specific risk be diversified away by investing in both Ibase Gaming and Kunyue Development 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 Kunyue Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibase Gaming and Kunyue Development Co, you can compare the effects of market volatilities on Ibase Gaming and Kunyue Development 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 Kunyue Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibase Gaming and Kunyue Development.
Diversification Opportunities for Ibase Gaming and Kunyue Development
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ibase and Kunyue is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ibase Gaming and Kunyue Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunyue Development 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 Kunyue Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunyue Development has no effect on the direction of Ibase Gaming i.e., Ibase Gaming and Kunyue Development go up and down completely randomly.
Pair Corralation between Ibase Gaming and Kunyue Development
Assuming the 90 days trading horizon Ibase Gaming is expected to under-perform the Kunyue Development. In addition to that, Ibase Gaming is 1.17 times more volatile than Kunyue Development Co. It trades about -0.19 of its total potential returns per unit of risk. Kunyue Development Co is currently generating about 0.37 per unit of volatility. If you would invest 3,480 in Kunyue Development Co on August 27, 2024 and sell it today you would earn a total of 585.00 from holding Kunyue Development Co or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ibase Gaming vs. Kunyue Development Co
Performance |
| Timeline |
| Ibase Gaming |
| Kunyue Development |
Ibase Gaming and Kunyue Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibase Gaming and Kunyue Development
The main advantage of trading using opposite Ibase Gaming and Kunyue Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibase Gaming position performs unexpectedly, Kunyue Development 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 Kunyue Development will offset losses from the drop in Kunyue Development's long position.| Ibase Gaming vs. Global Unichip Corp | Ibase Gaming vs. Asmedia Technology | Ibase Gaming vs. Unimicron Technology Corp | Ibase Gaming vs. Novatek Microelectronics Corp |
| Kunyue Development vs. Sunfar Computer Co | Kunyue Development vs. Far EasTone Telecommunications | Kunyue Development vs. Vate Technology Co | Kunyue Development vs. Elitegroup Computer Systems |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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