Correlation Between PChome Online and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both PChome Online and Ibase Gaming 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 PChome Online and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PChome Online and Ibase Gaming, you can compare the effects of market volatilities on PChome Online and Ibase Gaming 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 PChome Online with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of PChome Online and Ibase Gaming.
Diversification Opportunities for PChome Online and Ibase Gaming
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PChome and Ibase is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PChome Online and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and PChome Online 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 PChome Online are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of PChome Online i.e., PChome Online and Ibase Gaming go up and down completely randomly.
Pair Corralation between PChome Online and Ibase Gaming
Assuming the 90 days trading horizon PChome Online is expected to generate 1.17 times more return on investment than Ibase Gaming. However, PChome Online is 1.17 times more volatile than Ibase Gaming. It trades about 0.03 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.04 per unit of risk. If you would invest 4,560 in PChome Online on September 3, 2024 and sell it today you would earn a total of 620.00 from holding PChome Online or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PChome Online vs. Ibase Gaming
Performance |
| Timeline |
| PChome Online |
| Ibase Gaming |
PChome Online and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PChome Online and Ibase Gaming
The main advantage of trading using opposite PChome Online and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PChome Online position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| PChome Online vs. President Chain Store | PChome Online vs. Uni President Enterprises Corp | PChome Online vs. Taiwan FamilyMart Co | PChome Online vs. Eclat Textile Co |
| Ibase Gaming vs. Sitronix Technology Corp | Ibase Gaming vs. Kinsus Interconnect Technology | Ibase Gaming vs. WiseChip Semiconductor | Ibase Gaming vs. Novatek Microelectronics Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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