Correlation Between Bedford Energy and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Bedford Energy 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 Bedford Energy and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bedford Energy and GungHo Online Entertainment, you can compare the effects of market volatilities on Bedford Energy 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 Bedford Energy with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bedford Energy and GungHo Online.
Diversification Opportunities for Bedford Energy and GungHo Online
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bedford and GungHo is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Bedford Energy 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 Bedford Energy 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 Bedford Energy 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 Bedford Energy i.e., Bedford Energy and GungHo Online go up and down completely randomly.
Pair Corralation between Bedford Energy and GungHo Online
If you would invest 1,928 in GungHo Online Entertainment on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GungHo Online Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bedford Energy vs. GungHo Online Entertainment
Performance |
| Timeline |
| Bedford Energy |
| GungHo Online Entert |
Bedford Energy and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bedford Energy and GungHo Online
The main advantage of trading using opposite Bedford Energy and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bedford Energy 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.| Bedford Energy vs. Equinor ASA ADR | Bedford Energy vs. TotalEnergies SE ADR | Bedford Energy vs. Ecopetrol SA ADR | Bedford Energy vs. National Fuel Gas |
| GungHo Online vs. GDEV Inc | GungHo Online vs. Doubledown Interactive Co | GungHo Online vs. Playstudios | GungHo Online vs. SohuCom |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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