Correlation Between GAME HOURS and Feng Ching
Can any of the company-specific risk be diversified away by investing in both GAME HOURS and Feng Ching 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 GAME HOURS and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAME HOURS and Feng Ching Metal, you can compare the effects of market volatilities on GAME HOURS and Feng Ching 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 GAME HOURS with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAME HOURS and Feng Ching.
Diversification Opportunities for GAME HOURS and Feng Ching
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAME and Feng is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GAME HOURS and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and GAME HOURS 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 GAME HOURS are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of GAME HOURS i.e., GAME HOURS and Feng Ching go up and down completely randomly.
Pair Corralation between GAME HOURS and Feng Ching
Assuming the 90 days trading horizon GAME HOURS is expected to generate 31.96 times more return on investment than Feng Ching. However, GAME HOURS is 31.96 times more volatile than Feng Ching Metal. It trades about 0.08 of its potential returns per unit of risk. Feng Ching Metal is currently generating about 0.01 per unit of risk. If you would invest 5,200 in GAME HOURS on November 28, 2024 and sell it today you would lose (4,110) from holding GAME HOURS or give up 79.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAME HOURS vs. Feng Ching Metal
Performance |
| Timeline |
| GAME HOURS |
| Feng Ching Metal |
GAME HOURS and Feng Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAME HOURS and Feng Ching
The main advantage of trading using opposite GAME HOURS and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAME HOURS position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.| GAME HOURS vs. International Games System | GAME HOURS vs. Gamania Digital Entertainment | GAME HOURS vs. Soft World International | GAME HOURS vs. Softstar Entertainment |
| Feng Ching vs. Da Cin Construction Co | Feng Ching vs. China Construction Bank | Feng Ching vs. Lihtai Construction Enterprise | Feng Ching vs. Advanced Wireless Semiconductor |
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 Stocks Directory module to find actively traded stocks across global markets.
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