Correlation Between Great China and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Great China 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 Great China and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great China Metal and Ibase Gaming, you can compare the effects of market volatilities on Great China 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 Great China with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great China and Ibase Gaming.
Diversification Opportunities for Great China and Ibase Gaming
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Great and Ibase is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Great China Metal and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and Great China 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 Great China Metal 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 Great China i.e., Great China and Ibase Gaming go up and down completely randomly.
Pair Corralation between Great China and Ibase Gaming
Assuming the 90 days trading horizon Great China Metal is expected to generate 0.18 times more return on investment than Ibase Gaming. However, Great China Metal is 5.57 times less risky than Ibase Gaming. It trades about 0.0 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.04 per unit of risk. If you would invest 2,407 in Great China Metal on November 28, 2024 and sell it today you would lose (27.00) from holding Great China Metal or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Great China Metal vs. Ibase Gaming
Performance |
| Timeline |
| Great China Metal |
| Ibase Gaming |
Great China and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great China and Ibase Gaming
The main advantage of trading using opposite Great China and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great China 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.| Great China vs. Taiwan Hon Chuan | Great China vs. Taiwan Secom Co | Great China vs. Taiwan Fu Hsing | Great China vs. Taiwan Shin Kong |
| Ibase Gaming vs. Emerging Display Technologies | Ibase Gaming vs. Lanner Electronics | Ibase Gaming vs. King Chou Marine | Ibase Gaming vs. Information Technology Total |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |