Correlation Between GungHo Online and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both GungHo Online and ADRIATIC METALS 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on GungHo Online and ADRIATIC METALS 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 ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and ADRIATIC METALS.
Diversification Opportunities for GungHo Online and ADRIATIC METALS
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GungHo and ADRIATIC is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS 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 ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of GungHo Online i.e., GungHo Online and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between GungHo Online and ADRIATIC METALS
Assuming the 90 days horizon GungHo Online Entertainment is expected to generate 1.19 times more return on investment than ADRIATIC METALS. However, GungHo Online is 1.19 times more volatile than ADRIATIC METALS LS 013355. It trades about 0.2 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about -0.34 per unit of risk. If you would invest 1,850 in GungHo Online Entertainment on October 13, 2024 and sell it today you would earn a total of 170.00 from holding GungHo Online Entertainment or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GungHo Online Entertainment vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| GungHo Online Entert |
| ADRIATIC METALS LS |
GungHo Online and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and ADRIATIC METALS
The main advantage of trading using opposite GungHo Online and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| GungHo Online vs. TOREX SEMICONDUCTOR LTD | GungHo Online vs. United Rentals | GungHo Online vs. Global Ship Lease | GungHo Online vs. Solstad Offshore ASA |
| ADRIATIC METALS vs. Lamar Advertising | ADRIATIC METALS vs. GungHo Online Entertainment | ADRIATIC METALS vs. Ares Management Corp | ADRIATIC METALS vs. Penta Ocean Construction Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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