Correlation Between BORR DRILLING and GungHo Online
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING 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 BORR DRILLING and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BORR DRILLING NEW and GungHo Online Entertainment, you can compare the effects of market volatilities on BORR DRILLING 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 BORR DRILLING with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and GungHo Online.
Diversification Opportunities for BORR DRILLING and GungHo Online
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BORR and GungHo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW 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 BORR DRILLING 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 BORR DRILLING NEW 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 BORR DRILLING i.e., BORR DRILLING and GungHo Online go up and down completely randomly.
Pair Corralation between BORR DRILLING and GungHo Online
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the GungHo Online. In addition to that, BORR DRILLING is 2.62 times more volatile than GungHo Online Entertainment. It trades about -0.02 of its total potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.02 per unit of volatility. If you would invest 1,850 in GungHo Online Entertainment on September 14, 2024 and sell it today you would earn a total of 10.00 from holding GungHo Online Entertainment or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. GungHo Online Entertainment
Performance |
| Timeline |
| BORR DRILLING NEW |
| GungHo Online Entert |
BORR DRILLING and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and GungHo Online
The main advantage of trading using opposite BORR DRILLING and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING 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.| BORR DRILLING vs. MAVEN WIRELESS SWEDEN | BORR DRILLING vs. Dairy Farm International | BORR DRILLING vs. CITY OFFICE REIT | BORR DRILLING vs. Tyson Foods |
| GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Superior Plus Corp | GungHo Online vs. SIVERS SEMICONDUCTORS AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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