Correlation Between GungHo Online and SOGECLAIR
Can any of the company-specific risk be diversified away by investing in both GungHo Online and SOGECLAIR 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 GungHo Online and SOGECLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and SOGECLAIR SA INH, you can compare the effects of market volatilities on GungHo Online and SOGECLAIR 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 GungHo Online with a short position of SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and SOGECLAIR.
Diversification Opportunities for GungHo Online and SOGECLAIR
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GungHo and SOGECLAIR is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH and GungHo 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 GungHo Online Entertainment are associated (or correlated) with SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of GungHo Online i.e., GungHo Online and SOGECLAIR go up and down completely randomly.
Pair Corralation between GungHo Online and SOGECLAIR
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.0 times more return on investment than SOGECLAIR. However, GungHo Online is 1.0 times more volatile than SOGECLAIR SA INH. It trades about 0.03 of its potential returns per unit of risk. SOGECLAIR SA INH is currently generating about 0.02 per unit of risk. If you would invest 1,490 in GungHo Online Entertainment on October 11, 2024 and sell it today you would earn a total of 430.00 from holding GungHo Online Entertainment or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. SOGECLAIR SA INH
Performance |
| Timeline |
| GungHo Online Entert |
| SOGECLAIR SA INH |
GungHo Online and SOGECLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and SOGECLAIR
The main advantage of trading using opposite GungHo Online and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.| GungHo Online vs. Sea Limited | GungHo Online vs. Electronic Arts | GungHo Online vs. NEXON Co | GungHo Online vs. NEXON Co |
| SOGECLAIR vs. GungHo Online Entertainment | SOGECLAIR vs. Guidewire Software | SOGECLAIR vs. YATRA ONLINE DL 0001 | SOGECLAIR vs. PACIFIC ONLINE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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