Correlation Between PKSHA TECHNOLOGY and GungHo Online
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and GungHo Online 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 PKSHA TECHNOLOGY and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and GungHo Online Entertainment, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and GungHo Online 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 PKSHA TECHNOLOGY with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and GungHo Online.
Diversification Opportunities for PKSHA TECHNOLOGY and GungHo Online
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PKSHA and GungHo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and GungHo Online go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and GungHo Online
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.72 times more return on investment than GungHo Online. However, PKSHA TECHNOLOGY is 1.72 times more volatile than GungHo Online Entertainment. It trades about 0.05 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.03 per unit of risk. If you would invest 1,240 in PKSHA TECHNOLOGY INC on October 29, 2024 and sell it today you would earn a total of 860.00 from holding PKSHA TECHNOLOGY INC or generate 69.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. GungHo Online Entertainment
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| GungHo Online Entert |
PKSHA TECHNOLOGY and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and GungHo Online
The main advantage of trading using opposite PKSHA TECHNOLOGY and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| PKSHA TECHNOLOGY vs. Rayonier Advanced Materials | PKSHA TECHNOLOGY vs. Westinghouse Air Brake | PKSHA TECHNOLOGY vs. Martin Marietta Materials | PKSHA TECHNOLOGY vs. Compagnie Plastic Omnium |
| GungHo Online vs. PATTIES FOODS | GungHo Online vs. Altair Engineering | GungHo Online vs. Westinghouse Air Brake | GungHo Online vs. RYANAIR HLDGS ADR |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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